RFS firm is considering a new project that will cause accounts payable to increase by $55,000, accounts receivable to increase by $80,000 and inventory to decrease by $15,000. Which one of the following statements is true?

Question 13 options:

1)	The project will not affect net working capital.

2)	The change in accounts payable is a use of cash.

3)	The change in inventory is a use of cash.

4)	The project will decrease the amount of operating cash flow.

5)	Net working capital will decrease.