Find the cash flows involved in investing in NOWC from the start of the project to the end of the projec

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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35. An investment project has sales forecasts as follows:

year sales
0 0 million baht
1 20 million baht
2 30 million baht
3 40 million baht
The company has to invest in Operating Working Capital (NOWC)

before the next year's sales And will get this part of the fund back at the end of the project

The company must invest in NOWC equal to 20% of sales.

Find the cash flows involved in investing in NOWC from the start of the project to the end of the project (million baht).

0
1
2
✓ m
3
Sales
0
20
30
40
NOWC
4
6
8
0
CF
☐☐
Transcribed Image Text:0 1 2 ✓ m 3 Sales 0 20 30 40 NOWC 4 6 8 0 CF ☐☐
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