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Your firm plans a project that will generate revenues of $165 million. The cost of goods sold (COGS) is expected to be $90 million. The
Your firm plans a project that will generate revenues of $165 million. The cost of goods sold (COGS) is expected to be $90 million. The firm offers 60 days credit to its customers and in turn, gets 90 days credit from its suppliers. Assume that: - The only components of NWC are accounts receivable and accounts payable. - There are 360 days a year. - Working capital days for accounts receivable are based on revenue. - Working capital days for accounts payable are based on costs. What is the amount of NWC the firm will need? Write your answer in million dollars with one digit after the decimal point
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