Homework Answers
Working capital Change = Change in Current Asset - Change in Current Liabilities
Working capital Change = (Cash+Receivable+Inventory) - (Payable)
Working Capital Change = (0.03*890,000+0.05*890000+0.10*890000)-(0.04*890000) = $ 124600
Expected Incremental Cash flow = $ 890000-$124600= $ 765400.
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