Question

working capital required is treated as .......
a. cash inflow
b.cash outflow
c.cost of capital​

Answer 1

Answer:

Working capital required is treated as cost of capital

Answer 2

Answer:

Working capital required is treated as the cost of capital.

Explanation:

What is Working Capital ?

The working capital of a business which is utilized in its everyday trading operations, determined as the current assets less the current liabilities.

Working Capital = Current Assets - Current Liabilities

What is meant by Cost of Capital ?

Cost of capital alludes to the return an organization expects that on a special investment to make it worth the consumption / expenditure of the assets. Or, in other words, the expense (cost) of capital determines the rate of return expected to convince financial investors to fund a capital budgeting project.

Cash inflow and cash outflows are the cash which the organization receives and the cash which flows out of the organization respectively.

Hence, we can say that the working capital required is treated as cost of capital.