If a companys net working capital (NWC) is $5,000 in year 1 and $7,000 in year 2, what will be the effect of NWC on total cash flows in year 2?

A.Total year 2 cash flow will be $2,000 higher than if NWC did not change.

B.Total year 2 cash flow will be $7,000 higher than if NWC did not change.

C.Total year 2 cash flow will be $7,000 lower than if NWC did not change.

D.Total year 2 cash flow will be $2,000 lower than if NWC did not change.

E.None of the answers is correct.