4. While doing a capital budgeting analysis you realized that the project would require an increase in inventory of $8,000.

You should ignore the inventory requirement because it is not an operating cash flow.

record the $8,000 at time zero as an additional benefit of taking the project.

remember to depreciate the $8,000 over the depreciable life of the project.

record the $8,000 at time zero as an additional cost of taking the project.

none of the above are accurate.