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If a company's net working capital (NWC) is $5,000 in year 1 and $7,000 in year 2, what will be the effect of NWC on
If a company's 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. None of the answers is correct. Total year 2 cash flow will be $7,000 higher than if NWC did not change. B. C. Total year 2 cash flow will be $2,000 higher than if NWC did not change. Total year 2 cash flow will be $2,000 lower than if NWC did not change. D. Total year 2 cash flow will be $7,000 lower than if NWC did not change. O E
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