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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › WC and initial investment- SLEEPON HOTELS INC (DEC 05 ADAPTED)-Kaplan exam kit
sir in this question i had another doubt. Why has the initial investment not been adjusted for inflation? Its supposedly is in current terms and needs to be inflated just like Working capital is inflated. so, i can you please explain sir why it has not been adjusted upwards like: 200mx1.03=206m?
It is not in current terms.
The sentence above detailing the cost of construction in the question specifically excludes construction costs.