Question
A donut shop is considering opening a new location in the area. It has estimated the required immediate investment into this project, as well as
A donut shop is considering opening a new location in the area. It has estimated the required immediate investment into this project, as well as future revenues and expenses. The manager also believe that an immediate investment of $402 in net working capital would be required to support the project. It will be necessary to increase the net working capital by $31 in each subsequent year. In the final year, which is Year 7, the net working capital will be recovered.
How much net working capital will be recovered at the end of the final year of this project?
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