DARN CO- Investment AppraisalForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › DARN CO- Investment AppraisalThis topic has 3 replies, 2 voices, and was last updated 4 years ago by John Moffat.Viewing 4 posts - 1 through 4 (of 4 total)AuthorPosts October 29, 2021 at 7:18 pm #639406 tabasumzeParticipantTopics: 40Replies: 48☆☆I have this doubt in working capital..Working capital is required at 10% of annual sales. If suppose the sales are in current terms and we inflate it using the general rate of inflation given, why do we calculate working capital on the inflated sales revenue?Why is inflation included in working capital? October 30, 2021 at 6:00 am #639421 John MoffatKeymasterTopics: 57Replies: 54804☆☆☆☆☆Because working capital is the amount needed to finance receivables etc., if the sales increase then the working capital required will increase also. October 30, 2021 at 1:51 pm #639477 tabasumzeParticipantTopics: 40Replies: 48☆☆Got it, thanks. October 30, 2021 at 5:25 pm #639492 John MoffatKeymasterTopics: 57Replies: 54804☆☆☆☆☆You are welcome 🙂AuthorPostsViewing 4 posts - 1 through 4 (of 4 total)The topic ‘DARN CO- Investment Appraisal’ is closed to new replies.