Question

g A proposed project requires an initial investment of $8,500 in current assets, 75% of which will be financed with accounts payable. The project will have: a cash outflow for net working capital at the end of the project. a cash outflow for net working capital every year of the project's life. an initial cash outflow of $8,500 at time zero for net working capital. a cash inflow at the end of the project from net working capital.

Answer 1

Answer:

a cash inflow at the end of the project from net working capital

Explanation:

Given data:

Initial investment = $ 8500

Account payable = 75% of the amount invested = 0.75 × $ 8500 = $ 6375

Now,

the net working capital invested = Initial investment - Account payable

or

the net working capital invested = $ 8500 - $ 6375

or

the net working capital invested = $ 2125

hence, the answer is "a cash inflow at the end of the project from net working capital"