A New Project Would Require an Immediate Increase in Raw

question 31

Multiple Choice

A new project would require an immediate increase in raw materials in the amount of $12,000. The firm expects that accounts payable will automatically increase $8,500. How much must the firm expect its investment in net working capital to change if they accept this project?

• A) +$20,000
• B) +$3,500
• C) −$20,500
• D) −$3,500

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Definitions:

Dorsal Rami

Branches of spinal nerves that innervate muscles and skin of the back.

Endorphins

Natural pain-relieving and happiness-inducing chemicals produced by the brain in response to stress or discomfort.

Neurotransmitters

Chemicals in the brain and body that transmit signals across neurons.

Vestibulocochlear

Pertaining to the vestibulocochlear nerve, which transmits sound and equilibrium (balance) information from the inner ear to the brain.