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Scenario: A firm is considering investing in a new machine that will last for 6 years. They expect the new machine to initially reduce the
Scenario: A firm is considering investing in a new machine that will last for 6 years. They expect the new machine to initially reduce the inventory that they need by $105,000. After the initial inventory reduction, the firm will be able to decrease their parts inventory by $10,000 each year. At the end of the machine's life the inventory reductions will be reversed.
What is the net working capital for this project in year 6?
Group of answer choices
-$155,000
-$105,000
$155,000
$105,000
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