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f9- Technical Article: ADVANCED INVESTMENT APPRAISAL

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › f9- Technical Article: ADVANCED INVESTMENT APPRAISAL

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.
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  • May 18, 2015 at 7:13 pm #246945
    mayfikry
    Member
    • Topics: 23
    • Replies: 23
    • ☆

    Hello,

    So i basically understood the whole question. But in the working capital computation i dont understand how he came to the figure of working capital cashflow for year four as 2.1.

    Mind you looking at it an explaining me how?

    Thanks in advance

    Link to the article: https://www.accaglobal.com/pk/en/student/exam-support-resources/fundamentals-exams-study-resources/f9/technical-articles/advanced-investment-appraisal.html

    May 18, 2015 at 9:18 pm #246993
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54704
    • ☆☆☆☆☆

    At time 3, the level of working capital is 11.7. However at time 4, they only need working capital of 9.6. So the working capital reduces and therefore the difference (11.7 – 9.6) is recovered and there is therefore an inflow of the difference of 2.1.

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