Question
In a capital investment we treat the investment in incremental working capital as a part of the initial investment and recover exactly the same amount
In a capital investment we treat the investment in incremental working capital as a part of the initial investment and recover exactly the same amount in the terminal value calculations. Since the amounts are the same and offset, why do we do that and how does that treatment affect the investment evaluation?
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While its true that the initial investment in incremental working capital is recovered in the terminal valuetreating it as part of the initial investm...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
