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is pre launch expense included in the inital cost It is estimated that the project will require an initial investment in stock ( ntory) of
is pre launch expense included in the inital cost
It is estimated that the project will require an initial investment in stock ( ntory) of $320,000. Moreover, $140,000 will be tied up with debtors (accounts receivables) due to increasing sales; however, it would be partially offset by $60,000 increase in creditors (accounts payable). The project manager has the plan to maintain the same level of net working capital (NWC) throughout the life of the project (i.e., no further investment in NWC during the project life) before final recovery of NWC at the end of four years. There will be pre-launching expenses of $100,000 to be incurred initially for this project Step by Step Solution
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