Assume that over the life of project X, net working capital is maintained at an amount equal to the
initial investment. If so, net working capital doesn't need to be included in the NPV computation,
since the outﬂow at time zero is exactly (as we generally assume) offset by an equal inﬂow at the
end of the project's life.

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The Answer of Assume that over the life of project X, net working capital is maintained at an amount equal to the
initial investment. If so, net working capital doesn't need to be included in the NPV computation,
since the outﬂow at time zero is exactly (as we generally assume) offset by an equal inﬂow at the
end of the project's life.

Assume That Over the Life of Project X, Net Working