Question: How does net working capital affect the NPV of a six-year project if working capital is expected to increase by $25,000 at the beginning of

How does net working capital affect the NPV of a six-year project if working capital is expected to increase by $25,000 at the beginning of the project and recaptured at the end (the firm has a 15% cost of capital)?

		NPV will decrease by $14191
		NPV will decrease by $25,000
		NPV will increase by $12,571
		NPV will decrease by $12,571

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