Brennan's Boats Is Considering a Project Which Will Require Additional

question 61

Multiple Choice

Brennan's Boats is considering a project which will require additional inventory of $128,000 and will also increase accounts payable by $47,000 as suppliers are willing to finance part of these purchases. Accounts receivable are currently $85,000 and are expected to increase by 10% if this project is accepted. What is the initial project cash flow needed for net working capital?

• A) $88,000
• B) $79,500
• C) $96,500
• D) $190,300
• E) $190,500

---

Definitions:

Endergonic Reactions

Chemical reactions that absorb energy from their surroundings, typically requiring an input of energy to proceed.

Exergonic Reaction

A chemical reaction that releases energy through the process of work, typically characterized by a negative Gibbs free energy.

Activation Energy

The minimum quantity of energy that the reacting species must possess in order to undergo a specified reaction.

ATP

Adenosine triphosphate, a molecule that stores and transfers energy within cells, acting as a main energy currency.