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The Card Shoppe Needs to Maintain 21 Percent of Its

Question 74

Multiple Choice
The Card Shoppe needs to maintain 21 percent of its sales in net working capital. Currently, the store is considering a four-year project that will increase sales from its current level of $349,000 to $408,000 the first year and to $414,000 a year for the following three years of the project. What amount should be included in the project analysis for net working capital in Year 4 of the project?

The Card Shoppe needs to maintain 21 percent of its sales in net working capital. Currently, the store is considering a four-year project that will increase sales from its current level of $349,000 to $408,000 the first year and to $414,000 a year for the following three years of the project. What amount should be included in the project analysis for net working capital in Year 4 of the project?


A) −$1,260
B) $86,940
C) $0 
D) $21,720
E) $13,650

Correct Answer:

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