Hey! i have already asked the tutor..but just in case can somebody explain the solution to this P,I Question...i really dont understand how they worked out the initial investments in the text...
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FMbpp text question 18
hi actually initial investment = plant & machinery cost + working capital
and working capital =20% of annual sales value. for fiest inv A sales 30*150000=4500000 and 20%of this = 900000 plus plant cost = 2100,000 so total initial outlay = 3000000. hope it helps
and working capital =20% of annual sales value. for fiest inv A sales 30*150000=4500000 and 20%of this = 900000 plus plant cost = 2100,000 so total initial outlay = 3000000. hope it helps
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