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A New Project Would Require an Immediate Increase in Raw

Question 31

Multiple Choice

A new project would require an immediate increase in raw materials in the amount of $12,000. The firm expects that accounts payable will automatically increase $8,500. How much must the firm expect its investment in net working capital to change if they accept this project?


A) +$20,000
B) +$3,500
C) −$20,500
D) −$3,500

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