• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • FIA Forums
  • CIMA Forums
  • OBU Forums
  • Qualified Members forum
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for December 2025 exams.
Get your discount code >>

investment decision

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › investment decision

  • This topic has 1 reply, 2 voices, and was last updated 11 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • May 4, 2014 at 1:52 pm #167380
    ban123
    Member
    • Topics: 16
    • Replies: 15
    • ☆

    Hi,

    It is not clear to me, is the working capital a relevant cash flow item for the investment decision? The book says that it will be repaid at the end (inventory A/R), so we do not have to calculate with it? Seems as though it only gives a time delay, but not a total difference.

    In all, do we have to add the working capital elements of the investment to the decision calculation or not?

    Thanks

    May 4, 2014 at 2:49 pm #167392
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54755
    • ☆☆☆☆☆

    Working capital is a cash flow and is therefore relevant.

    We usually assume that it is recovered (i.e. is an inflow) at the end of the project.

    Can I suggest that you watch my free lecture here on relevant cash flows for DCF?

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • Ejueyitsi-Toju on FM Chapter 15 Questions Test 2 – The valuation of securities – theoretical approach
  • Burtv1610 on Financial instruments – convertible debentures – ACCA Financial Reporting (FR)
  • BhavitB on Objectives of organisations – ACCA (AFM) lectures
  • Moliselumka on MA Chapter 1 Questions Accounting for Management
  • Luqman12 on The use of computers in accounting – ACCA Financial Accounting (FA) / FIA FFA

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in