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A project will require $543,000 for fixed assets, $150,000 for inventory. Accounts payable is expected to decrease by $125,000 and accounts receivable is expected to
A project will require $543,000 for fixed assets, $150,000 for inventory. Accounts payable is expected to decrease by $125,000 and accounts receivable is expected to decrease by $55,000. The project has a six-year life. The fixed assets will be depreciated straight-line to zero book value over the life of the project. The project is expected to generate annual sales of $905,000 with costs of $730,000. For the project analysis, what amount should be used as the initial cash flow for net working capital?
-$325,000 | ||
-$207,000 | ||
-$335,000 | ||
-$220,000 |
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