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The expected revenue in Year 1 from a new investment is $1.2 million and the expected revenue in Year 2 from this investment is $1.4
The expected revenue in Year 1 from a new investment is $1.2 million and the expected revenue in Year 2 from this investment is $1.4 million. Assuming the firms working capital to revenue ratio is 5%, what does the change in working capital equal in year 1 and year 2? Does this change in working capital cause a cash inflow or a cash outflow?
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