Rainer Co

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August 30, 2019 at 8:45 pm #543893
kennigara
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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?
August 31, 2019 at 8:56 am #543940
John Moffat
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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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