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It is also estimated that the new production line will require an initial increase in investment for $650,000 in stock (inventories) and $350,000 in debtors

It is also estimated that the new production line will require an initial increase in investment for $650,000 in stock (inventories) and $350,000 in debtors (accounts receivable) that are offset by an increase in creditors of $200,000 (accounts payable). There will be no further investment in net working capital(NWC) until its final recovery at the end of project life.

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