@tkeenan
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I think I didn’t word the question very well. If you look at the question: #49 of the CFAI practice exam there is working capital invested at the initiation of the project plus additional WC investments each year through the life of the project. I agree with you that the working capital is not returned until the project ends but if you require additional investment throughout the project I would expect these to be included in your annual cash flows (negative value as these are investment costs). Basically the question has a irregular capital investment profile with additional capital invested after initiation of the project. The CFA material (at least the Schwesers material) only really covers regular capital investment profile (invest capital/wc upfront, annual cash flows, terminal CF). I thought they were trying to complicate with an irregular cash flow model with additional investment but I think it was just poorly written.
