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June 2015 Q1bi

Forums › ACCA Forums › ACCA AFM Advanced Financial Management Forums › June 2015 Q1bi

  • This topic has 0 replies, 1 voice, and was last updated 10 years ago by Avatarflocy.
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  • February 11, 2016 at 5:33 pm #300075
    Avatarflocy
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    • Topics: 2
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    I am going through June 2015 Q1 cashflow bit, I cant seem to understand the working capital bit: as per Question -The working capital will need to be increased annually at the start of each of the next three years by Yilandwe’s inflation rate and it is assumed that this will be released at the end of the project’s life.
    In the answer, why is the working capital decreasing over the years? Am I missing something, help?
    The last bit of releasing it is okay, just need to understand the reasoning.

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