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A project is expected to increase inventory by $15,501, increase accounts payable by $8,865 and decrease accounts receivable by $1,246. What is the project's cash flow from net working capital at time zero?

Respuesta :

ogbe2k3

Answer:

-$5390

Explanation:

From the example, the steps taken in solving the problem is given below

The Project increase in inventory = $15501

The Increase accounts payable =$8865

The decrease accounts receivable =$1246

Cash flow 0 = - $15501 + $8865 + $1246

Then

- $15501 + $8865 + $1246=$5390

Therefore,

The project cash flow from net working capital at the time zero is -$5390

 

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