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releasing of additional working capital

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › releasing of additional working capital

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by AvatarJohn Moffat.
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  • March 7, 2017 at 9:17 am #376197
    Avatarooi
    Member
    • Topics: 7
    • Replies: 3
    • ☆

    do we have to release the additional of working capital at the end of the project life?

    I am looking at Dec 2015 Q5.

    there are additional w/cap but they are not released at the end of life? or am i missing out something important.

    March 7, 2017 at 1:44 pm #376250
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54846
    • ☆☆☆☆☆

    The working capital was not released because the question says that the machine will need replacing at the end of its life. Therefore the working capital will still be needed because the product will still continue to be produced.

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