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in order for this company to launch their new project, the company plans to accumulate excess inventory upfront in the first year of the project,
in order for this company to launch their new project, the company plans to accumulate excess inventory upfront in the first year of the project, leading to an increase in NWC of $50,000 in 1 year. In year 5 when the project is complete, the inventory will decrease by the same $50,000. if the total impact of these changes in NWC in years 1 and 5 is to not change the NPV of the project, what do we know about the required retuen (r) for their project?
A) r> 0%
B) r= 0%
C) not enough information
D) r < 0%
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