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Determine the change in net working capital that appears warranted for the following proposed project: Inventory...

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Finance

Determine the change in net working capital that appearswarranted for the following proposed project: Inventory levels willincrease 20% from their current value of 500,000; machinery willincrease by $75,000; accounts receivable because of a newcollection system will increase by only $15,000; accounts payablewill increase by $45,000. What happens to net working capital atthe end of the projects life?

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Ans It is given in the question that we have to find the changes in the net working capital at the end of the project life For that we have to find changes in the current assets and current    See Answer
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Transcribed Image Text

Determine the change in net working capital that appearswarranted for the following proposed project: Inventory levels willincrease 20% from their current value of 500,000; machinery willincrease by $75,000; accounts receivable because of a newcollection system will increase by only $15,000; accounts payablewill increase by $45,000. What happens to net working capital atthe end of the projects life?

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