Why working capital invested in initial investment recovered as inflow in last year of project ?
Ask the Tutor ACCA FM
Investment appraisal NPV
Working capital is the money tied up in receivables, inventory etc.. At the end of the project they no longer need the receivables and inventory and so the money is released.
Have you watched my free lectures on this?
Yes, but while solving questions I tend to forget sometimes.
I hope that I have reminded you OK :-)
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