[bazzy]

Thanks..!

[bazzy]

the question is ARGNIL CO.

[bazzy]

Yea sir, it is the question from december 2015

[bazzy]

Ok sir thanks for earlier reply,
As per your , we should assume that the WC will be fully recovered in the last year unless mentioned in question.

Sir one question is this:
“Working capital investment of $150,000 will already exist at the start of 4-year period, due to the operation of the existing machine. This investment in WC is expected to increase in nominal terms in line with the gen rate of inflation”

In this question i had doubt of recoverd or not i think its recovered…pls advise me if my question understanding is wrong…
I think in the second line mentions it…for conformation…!!

[bazzy]

Could you advise what amount should we take in D/E if the question is given “DEBT TO EQUITY is 0.2”
So how much will be equity and how much will be debt??

Appreciated if advised

[bazzy]

20000/.1 – ((6000/.1)/1.1)

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