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4 May, 08:32

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?

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  1. 4 May, 09:29
    0
    -$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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