Which year do we calculate the book value? The correct treatment in these areas will help us arrive at accurte estimate of OCF. This discussion is intended to help us arrive at how to treat the inflow and outlow of cash in the areas mention above. It will also help us to arrive at solutions to problems in the project and agreed on what information to submit for grading.

Open a discussion on how to treat the NWC, charity donation in the project work. The facts of the project indicate that the mine requires a 5% of sale investment on networking capital. The nwc will be build up in the year prior to sales. However, it did not state whether the 5% requirement on sale is per year basis or one time initial investment requirement on nwc.