The Buck Store Is Considering a Project That Will Require

question 23

Multiple Choice

The Buck Store is considering a project that will require additional inventory of $216,000 and will increase accounts payable by $181,000.Accounts receivable are currently $525,000 and are expected to increase by 9 percent if this project is accepted.What is the project's initial cash flow for net working capital?

• A)-$82,250
• B)-$12,250
• C)$12,250
• D)$36,250
• E)$44,250

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