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.

---

Definitions:

Conversation Thread

A sequence of messages or comments on a particular subject, displayed together in a cohesive online or electronic dialogue.

Attachment

A file or document that is added to and sent along with an email or other electronic message.

Sender's Name

The name or identity of the individual or entity sending a message, document, or package.

E-Mail Message

A digital form of communication sent from one computer user to one or more recipients via a network.