A New Project Requires an Increase in Both Current Assets

question 62

Multiple Choice

A new project requires an increase in both current assets and current liabilities of $125,000 each.What is the overall impact on net working capital investment?

• A)an increase of zero.
• B)an increase of $125,000.
• C)an increase of $250,000.
• D)an increase of $62,500, when averaged over the life of the project.

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