Question: Return to Better Mousetraps in Problem 18. Suppose the firm can cut its requirements for working capital in half by using better inventory control systems.

Return to Better Mousetraps in Problem 18. Suppose the firm can cut its requirements for working capital in half by using better inventory control systems. By how much will this increase project NPV?

Mear 2 3456 Thereater 6 Thereafter Sales (milllons of traps) 0.5 0.6 1.0 1.0 0.6 0.2

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