Forums › ACCA Forums › ACCA FM Financial Management Forums › urgent help – please? working capital
- This topic has 2 replies, 3 voices, and was last updated 10 years ago by shonamushayi.
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- December 6, 2013 at 12:12 am #150913
Can someone please help?
I was under the impression when additional working capital was needed within an NPV question, i thought at the end of the years where working capital is input into the business there would always be a refund to the owner of the busines to the value of the working capital put in?
for example, in question 24 CJ Co (December 2010 exam) in the BPP revision book, there is the need for additional initional investment in working capital of $250k needed.
in the answer it says the £250k is first put in at time zero (fine) and then the incremement price in each period after that ($11k in period 1, $12k in period 2 etc) – but at the end in period 5 there was no reversal for the initial investment of working capital?
yet in an example i worked through earlier the working capital investment was reversed out at the end?
please help.
December 6, 2013 at 3:25 am #150920December 6, 2013 at 4:58 am #150926i think oogabooda has the right answer i once got confused before but in the question i did it stated that working capital would be taken back in the end of the project
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