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Suppose a firm is considering investing in a new product line which they expect to be obsolete in 5 years. They will need an initial
Suppose a firm is considering investing in a new product line which they expect to be obsolete in 5 years. They will need an initial investment in inventory of 540,000. They will also need inventory investment of 95,000 each year of the project. The firm expects to recover the full amount of the investment in NWC at the end of the project. What is their initial NWC?
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