Door Knobs examines how VAT impacts cash flow when evaluating an investment project, highlighting its role in timing and liquidity considerations. VAT paid on purchases can temporarily reduce available cash, while VAT collected on sales may create future liabilities. Properly accounting for these inflows and outflows is essential to accurately assess the project’s financial viability. Understanding VAT effects ensures realistic cash flow projections, informed investment decisions, and better planning for both short-term and long-term financial management.
