Hi there,
On page 29, equation 9, TNOCF’s calcuation has “NWCinv” added in, which represents the same amount of NWCinv invested in the first year of the project. i.e. TNOCF = Sal_T +NWCInv - T(Sal_T - B_T).
It’s probably a silly question, but can anyone please explain to me why this term exists. The textbook says it’s a ”return” of net working capital. I simply don’t get it.
Many thanks.作者: zbird2134 时间: 2013-5-4 07:25
