Question: Junior's has a new project in mind that will increase accounts receivable by $20000, increase accounts payable by $15000, increase fixed assets by $13000, and
Junior's has a new project in mind that will increase accounts receivable by $20000, increase accounts payable by $15000, increase fixed assets by $13000, and decrease inventory by $10000. What is the amount the firm should use as the initial cash flow attributable to net working capital when it analyzes this project?
$10,000
-$7,000
-$5,000
$4,000
$8,000
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