FMA

Capital Expenditures (Capex): Capex refers to the funds a company invests in acquiring, maintaining, or upgrading its long-term assets, such as property, plant, equipment, or technology. These expenditures are aimed at improving the company's operational

Net Working Capital: Net working capital represents the difference between a company's current assets and current liabilities. It reflects the company's ability to meet its short-term obligations and fund its day-to-day operations. The components of working capital include cash, accounts receivable, inventory, and accounts payable. Positive net working capital indicates that a company has more current assets than current liabilities, providing a cushion to cover short-term obligations. Conversely, negative net working capital suggests that a company may face challenges in meeting its immediate financial obligations

Capex, short for capital expenditures, and net working capital are both important financial concepts related to a company's investments and financial health. However, they represent different aspects of a company's financial operations:

In summary, capex relates to investments in long-term assets that are expected to generate future benefits, while net working capital focuses on the liquidity and short-term financial position of a company. Both concepts are crucial for assessing a company's financial health and understanding its investment strategies. Effective management of both capex and net working capital is essential for a company's growth, profitability, and operational sustainability.

Minimum required rate of return that an investor requires to compensate for underlying risk of an investment / project. 

used to evaluate specific investment opportunities or projects. It represents the minimum rate of return that an investment must achieve in order to be considered acceptable or worthwhile.

average rate of return that a company needs to generate to satisfy its various capital providers, including both debt and equity holders.

hurdle rate is used to evaluate individual investment projects or opportunities, while WACC is used in the valuation of an entire company or its equity

amount of current assets exceeds the amount of current liabilities. Net working capital represents the difference between a company's current assets (such as cash, accounts receivable, inventory) and its current liabilities (such as accounts payable, short-term debt).