EKL is located in P-Land where the currency is the P$.

EKL is about to begin a 3-year project which is expected achieve sales of P$20,000 in year 1, P$23,200 in year 2 and P$25,000 in year 3. Working capital equivalent to 10 per cent of sales will be required.

If the companys cost of capital is 10 per cent, which is the present value of the working capital flows?

Answer: 562

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