
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:
Verified
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