Hi I have a doubt
Replacement project
Pp of new machine 8000
Shipping 2000
Sp of old machine 6000
BV of old 2000
Inventory increase cos of new machine 3000
AP increase cos of new Mac machine 1000
Tax 25%
What is the initial outlay ???
And : 7000 as per book
My doubt For calculating NWC : increase in CA so deduct 3000
Increase in CL so add 1000
NWC: -2000
So initial outlay will come 3000 instead of 7000
Can u pls clarify me as per book it’s 3000-1000 =2000