F9 sept/dec hybrid paper

Hi John,

this is in reference to the investment appraisal qn which appeared in the sept/dec hybrid paper. Can you please explain how the working capital is calculated ? Also can u please explain why the resale value of 200,000 has been deducted from the initial investment amount when calculating the capital allowances i.e its restricted to 1.3 mn instead of 1.5mn ? in all the other qns i have attempted i have not done this but ended up with the right answer. i had a look at the suggested answer but am confused so would appreciate sure explanation..thanks