Question: WINE & BEER is considering a project which will require additional inventory of $125,000 and will also increase accounts payable by $40,000 as suppliers are

WINE & BEER is considering a project which will require additional inventory of $125,000 and will also increase accounts payable by $40,000 as suppliers are willing to finance part of these purchases. Accounts receivable are currently $120,000 and are expected to increase by 10 percent if this project is accepted. What is the initial project cash flow related to net working capital?

a. $105,000 b. $97,000 c. $89,000 d. $8,560 e. $94,720

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