While doing a capital budgeting analysis you realized that

the project would require an increase in inventory of

$8,000.

You should:

A ignore the inventory requirement because it is not an

operating cash flow.

B record the $8,000 at time zero as an additional

benefit of taking the project.

C remember to depreciate the $8,000 over the

depreciable life of the project.

D record the $8,000 at time zero as an additional cost

of taking the project.

E none of the above are accurate.