Yilandwe (6/15)

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October 17, 2018 at 3:22 am #478853
sk300596
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The question says working capital will need to be increased annually , but in the solution it’s decreasing. (9600 is year 0, 2112 in year 1, 722 in year 2 and 1316 in year 3).
October 17, 2018 at 6:59 am #478871
John Moffat
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It is not decreasing. The 2,112 in year 1 is the extra working capital needed (and brings the total up to 9,600 + 2,112). The same applies in the later years.

I do explain this point in my free lectures.
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