What is the accounting treatment on the cash outflow? Another important issue on the project is the calculation of the after tax salvage value and depreciation.

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.