A new project would require an immediate increase in raw materials in the amount of $1,000. The firm expects that accounts payable will automatically increase $800. How much must the firm expect its investment in net working capital to change if they accept this project?

Question

Quizplus · Accepted Answer

The increase in raw materials is $1,000, and accounts payable will increase by $800. Therefore, the net change in working capital will be $1,000 - $800 = $200. Option B is the correct choice.

A New Project Would Require an Immediate Increase in Raw