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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?

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-$155,000

-$105,000

$155,000

$105,000

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