Hunter's Hut Is Considering a Project That Will Require Additional

question 11

Multiple Choice

Hunter's Hut is considering a project that will require additional inventory of $48,000 and will increase accounts payable by $22,000. Accounts receivable is currently $297,000 and is expected to increase by four percent if this project is accepted. What is the project's initial cash flow for net working capital?

• A) −$37,880
• B) −$81,880
• C) −$42,250
• D) −$66,550
• E) −$27,550

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Definitions:

Role-playing

An educational or training method in which participants simulate characters or scenarios to explore behaviors, skills, or concepts in a controlled environment.

Attitudes

A settled way of thinking or feeling about someone or something, which is often reflected in a person’s behavior.

Behaviour

The actions or reactions of an individual, group, or system in response to external or internal stimuli.

Benchmarking

The process of comparing one's business processes and performance metrics to industry bests or best practices from other companies.