Question: How does net working capital affect the NPV of a 7-year project if working capital is expected to increase by $45,000 and the rm has

How does net working capital affect the NPV of a 7-year project if working capital is expected to increase by $45,000 and the rm has a 13% cost of capital?

Multiple Choice

NPV will increase by $12,571
NPV will decrease by $25,000
NPV will decrease by $25,872
NPV will increase by $9,322

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