Initial outlay

CFA Level II
#1

Initial outlay = FCInv + Net WCInv

Is the WCInv non-cash or Cash WCInv?

Please add some comments.

thanks

#2

Yes it is cash. It’s what you have to add to your working capital in order to run the new project. You will then recover the investment at the end as you don’t need it when the project is done. The initial outlay is all about cash flows.