13. An investment requires working capital equal to 15% of the year’s sales revenue to be in place at the start of the relevant year. The sales revenue for the three year project is forecast as £80,000, £100,000 and £90,000.
13. An investment requires working capital equal to 15% of the year’s sales revenue to be in place at the start of the relevant year. The sales revenue for the three year project is forecast as £80,000, £100,000 and £90,000.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 27P
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13. An investment requires
What is the cashflow relating to working capital at time 2?
A £1,500 outflow
B £3,000 outflow
C £1,500 inflow
D £3,000 inflow
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