ABC Inc. is considering additional production facilities and expects - 14579

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  • Posted on: Sat 27 Oct, 2012
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Request Description

 

ABC Inc. is considering additional production facilities and expects inventory to increase by $4 million, accounts receivable by $2 million, and accounts payable by $2 million. If other working capital accounts stay the same, what is the incremental cash flow associated with this initial net working capital investment?
Answer
a. $ 8 million
b. $ 6 million
c. $ 0
d. $ 4 million

Solution Description

 

ABC Inc. is cons