Working capital

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June 1, 2014 at 2:43 pm #172361
hasanali95
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If working cap is to remain constant over the life of the project,do we inflate it each year by the inflation rate to cope up with inflation?

In the dec 13 q1 the examiner hasnt done so
At some other place the wc has been inflated
June 1, 2014 at 7:14 pm #172453
John Moffat
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Although we would normally inflate the working capital, doing this means injecting more working capital each year.
In this question it specifically states “It is not expected that any further injections of working capital will be required for the five years”
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