1. A project is expected to sell one million units initially at a price per unit of $16.50 and a cost per unit of $6.50. Units sold will increase by 10% each year over the projects 3 year life. Inventory each year will be equal to 15% of the next years forecasted sales, and accounts payable will be equal to 20% of cost of goods sold in the current year. If the cost of capital is 12%, then what is the present value of the changes in net working capital over the life of the project?

   		$534,911, a source of cash
   		$0
   		$1,027,918, a use of cash
   		$534,911, a use of cash
   		$1,027,918, a source of cash