American Homes Inc. is reviewing a proposal for a new project. The purchase price of assets needed for the project is estimated to be $120,000. The firm expects the following increases in the listed accounts:

Accounts Receivable:$12,000

Accounts Payable:$26,000

Inventories:$13,000

How much net working capital will the firm need?

A) $1,000

B) $2,000

C) $10,000

D) $16,000

E) None of the above