A project requires additional accounts receivable of $1,100,000 and additional inventory of $550,000. It results in additional

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A project requires additional accounts receivable of $1,100,000 and additional inventory of $550,000. It results in additional accounts payable of $940,000. Net working capital will return to its normal level following the 4-year project.

What is the effect on the NPV of the project solely due to this investment in net working capital, assuming a 12% required rate of return?

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Advanced Accounting

ISBN: 978-1118037911

1st Canadian Edition

Authors: Gail Fayerman

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Posted Date: Dec 27, 2023 03:43 AM

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A project requires additional accounts receivable of $1,100,000 and additional inventory of $550,000. It results in additional

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The effect on the Net Present Value NPV of the project due to the in... View the full answer

Advanced Accounting

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