Year------------------1-----------2-------------3-------------4
Sales volume-10000------12500----12500-------7500
sales price unit 30$ per unit
inflation rate for sales price is 3%
The new product will require an immediate investment in WC of 45000$ which will change in line with sales revenue.
How I calculate WC in this scenario?
Ask the Tutor ACCA FM
Rainer Co
I explain how to deal with changing working capital in my lectures on chapter 8 of our free lecture notes, working through example 3
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