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NPV with inventory balance

RRichard8y ago
dear Sir What value do we use of inventory in the NPV?
John MoffatJohn MoffatTutor8y ago#1
You will have to refer to an actual question, because it depends on what the question says. However inventory is normally not relevant for NPV calculations - it is usually just the working capital that is relevant (and this, by definition, includes the inventory).
RRichard8y ago#2
Great, thank you....i was thinking back to F5 when you were doing some similar calculation which had inventory a a value......must have been something else
John MoffatJohn MoffatTutor8y ago#3
You are welcome :-)
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