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Bloom Corporation needs to maintain 8 percent of its sales in net working capital. The...

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Accounting

Bloom Corporation needs to maintain 8 percent of its sales in net working capital. The firm is considering a 5-year project which will increase sales from their current level of $110,000 to $146,000, $152,000, $158,000, $164,000, and $155,000 for Years 1 to 5 of the project, respectively. What amount should be included in the project analysis cash flows for net working capital for Year 3 of the project?

$12,640

$480

$0

$480

$12,640

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