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A New Project Would Require an Immediate Increase in Raw

Question 49

Multiple Choice

A new project would require an immediate increase in raw materials in the amount of $1,000. The firm expects that accounts payable will automatically increase $800. How much must the firm expect its investment in net working capital to change if they accept this project?


A) +$1,800
B) +$200
C) −$200
D) −$1,800

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