Your new employer, Freeman Software, is considering a new project. The company's analysts project they will need to have available 2 months of sales in inventory at the start of the year, but this investment will be recovered fully at the end of the project. Sales are projected to be $12,000 in Year 1, $13,000 in Year 2, and $14,500 in Year 3. Based on these assumptions, how much will additional will Freeman need to invest in inventory at the start of the third year?

Select one:

a. $150

b. $250

c. $1,500

d. $2,000

$2,000