Suppose that Blooper's customers paid their bills with an average 3-month delay (instead of 2 months) and
Question:
Suppose that Blooper's customers paid their bills with an average 3-month delay (instead of 2 months) and that Blooper's inventories were 20% rather than 15% of next year's expenses.
a. Would project NPV be higher or lower than that in the worked example in the chapter?
b. Calculate Blooper's working capital in each year of its project.
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a The present value of the cost of buying is 25000 5000112 5 2216287 ...View the full answer
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0078034640
7th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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