12. An investment requires working capital equal to 9% of the year’s sales revenue to be in place at the start of the relevant year. The sales revenue for the four year project is forecast as £100,000, £90,000, £110,000 and £120,000. What is the cashflow relating to working capital at time 2? A £900 inflow B £900 outflow C £1,800 outflow D £9,900 outflow
12. An investment requires working capital equal to 9% of the year’s sales revenue to be in place at the start of the relevant year. The sales revenue for the four year project is forecast as £100,000, £90,000, £110,000 and £120,000. What is the cashflow relating to working capital at time 2? A £900 inflow B £900 outflow C £1,800 outflow D £9,900 outflow
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 27P
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12. An investment requires
What is the cashflow relating to working capital at time 2?
A £900 inflow
B £900 outflow
C £1,800 outflow
D £9,900 outflow
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