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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › P4 APV
Why do we consider incremental working capital even though the question doesn’t say so, for the purpose of APV?
We always consider incremental working capital when getting the cash flows for any investment appraisal (whether APV or not).
We want all the cash flows, and if more working capital is required then there is an additional cash flow.
Oh, alright. Got it!
Thank You so much 🙂
You are welcome 🙂