A New Project Would Require an Immediate Increase in Raw

question 80

Multiple Choice

A new project would require an immediate increase in raw materials in the amount $6,000. The firm expects that accounts payable will automatically increase $2,000. How much must the firm expect its investment in net working capital to increase if they accept this project?

• A) −$6,000
• B) −$4,000
• C) +$4,000
• D) +$6,000

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Definitions:

Domestically

Pertaining to or occurring within one's own country or home, often used in contrast to international or foreign contexts.

Globally

Pertaining to activities, considerations, or impacts that span across the entire world, not limited to any single geographical area.

Supply Objectives

Goals set by an organization regarding the procurement, management, and delivery of materials and products in a way that supports its business strategy and customer needs.

Organizational Objectives

The specific goals set by a business or institution that guide its operations and strategic direction.