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Exam 3 Corporate Finance Question--Neglect NWC?
Q19. Why doesn’t Schweser add back NWC as a cash inflow in the final year?
In the item set it clearly says that the new equipment will require 50,000 inventory increase and 20,000 increase in AP.
The answer they gave to the final year operating cash flow is 367,400 (year 4 total after tax cash flow of 292,400 + Sale at year 4 of 75,000) wheras I think it should be 397,400 (if you add the extra 30,000).
Any help please? |
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