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The Engineering Economist
A Journal Devoted to the Problems of Capital Investment
Volume 32, 1986 - Issue 1
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Original Articles

Revenue Requirement Analysis with Working Capital Changes: A Tutorial

Pages 1-16 | Published online: 27 Feb 2007
 

ABSTRACT

This paper provides an explicit method for including working capital changes in minimum annual revenue requirement analysis. It also shows the equivalence of cash flow and revenue requirement approaches when working capital changes are included in the analysis of capital expenditures.

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