Is the initial capital outlay not supposed to be 50 000(fixed 30 000 plus Increase in net Working capital 0f 20 000), CFAI applies the 50% debt ratio on the 30 000 for fixed capital outlay only? I thought you would apply the debt ratio on the total investment outlay of 50 000, where ami i missing the plot?
errata. cpk confirmed with cfai. see my previous post asking the same question:P
there is a typo for that if you refer to the errata. this has also been discussed a numebr of times
this has been discussed about 20times. you should be banned for not using the search function.