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Dear Sir
Acca pass paper Sept/Dec 2015 Q5
Why working capital not recovery in year 4?
My answer: working capital year 4: 172160, but the correct answer year 4: 8092Thanks
YanThe reason is that the question says that the machine will be replaced. Therefore production will still continue and therefore working capital would still be needed (and therefore not recovered).
However, the examiner did say after this exam that full marks would be given if you had recovered the working capital.
I do mention this point in my free lectures. The lectures are a complete free course for Paper F9 and cover everything needed to be able to pass the exam well.
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