A firm is considering a project that requires 10% of sales for investment in net working capital.
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Question:
A firm is considering a project that requires 10% of sales for investment in net working capital. If the firm's revenues for year 1 are $200,000, for year 2 $300,000 and for year 3 $450,000, what are the amounts of NWC for each of three years that should be considered part of the cash flows for the project.
Group of answer choices
20,000; 30,000; 45,000
20,000; 40,000; 60,000
20,000; 10,000; 15,000
None of the above
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780135811603
5th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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