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How do I find this answer using the BA2 Plus Calculator? 3. UTK Sports, Inc., is projecting cash flows for its new Vols #1 novelty
How do I find this answer using the BA2 Plus Calculator?
3. UTK Sports, Inc., is projecting cash flows for its new "Vols \#1" novelty merchandise line. After careful research, you have projected sales to be as indicated below. Because the production line requires raw materials inventory, and the sales force requires finished goods inventory, you have determined that working capital at Year t must equal 16% of sales revenues in Year t+1. That is, the working capital to support sales in Year t must be on hand the prior year. The tax rate is 35%. What is the required incremental investment in working capital required each year for capital budgeting purposes Step by Step Solution
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