If a new project is undertaken, the following items of the balance sheet are expected to change

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If a new project is undertaken, the following items of the balance sheet are expected to change due to the project as follows (thousands of dollars):image text in transcribed

For instance, in year 3 accounts receivable are expected to be $460,000 larger than today.

a. What is the incremental level of OWC at the end of each year?

b. What is the economic impact of these changes of OWC on the NPV of the project?

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Practical Finance For Operations And Supply Chain Management

ISBN: 9780262043595

1st Edition

Authors: Alejandro Serrano, Spyros D. Lekkakos, James B. Rice

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