Question: A new project would require an immediate increase in raw materials in the amount of $10,000. The firm expects that accounts payable will automatically increase

A new project would require an immediate increase in raw materials in the amount of $10,000. The firm expects that accounts payable will automatically increase $7,500. What will be the impact of the resulting change in the firm's net working capital on the firm's cash flows?

a.-$17,500

b.-$2,500

c.+$2,500

d.+$17,500

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