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i don’t know if i’ll be able to explain this doubt of mine very clearly, but here it is:
Sir if we have been told that WC increases by 10cents for every $1 of increase in revenue. Then the figures we derive by multiplying 10cents with absolute increase in revenue could be used directly in calculation of FCFE, FCF and investment appraisal?
Or that we have to take one more step now to find out the incremental WC figures by deducting the figures just arrived at from one another. If you get what i am trying to say…
many thanks!
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