Working Capital. Kim Andrews sells a very successful line of skin protection creams to Scottish golfers. She can spend \(£ 100,000\) now on additional inventory. The added inventory will increase earnings after taxes by \(£ 40,000\) per year. She is looking at a 6 -year time horizon. She expects to recover the \(£ 100,000\) inventory investment at the end of the six years. She must earn a 16 percent ROR.

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What is the NPV of this decision? Is this a wise use of funds? Why?