A New Inventory System Will Immediately Reduce Inventory Levels by $100,000.If

question 21

Multiple Choice

A new inventory system will immediately reduce inventory levels by $100,000.If this reduction is permanent and the cost of capital is 13%,how does the net working capital change affect company value?

• A) Company value increases by $100,000.
• B) NPV increases by $13,000.
• C) Company value will not change.
• D) Company value increases by $769,231.

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Definitions:

Psychological Well-being

A state of mental health where an individual experiences overall happiness, low levels of distress, and tends to function effectively in daily life.

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The specific qualifications, experiences, and skills that an employer determines are necessary to perform a given job.