Question

A project is expected to increase inventory by $17,000, increase accounts payable by $10,000, and decrease accounts receivable by $1,000. What is the project's cash flow from the changes in net working capital at time zero (today)?

Answer 1

Answer:

-$6,000

Explanation:

Computation of the project's cash flow from net working capital at time zero

Using this formula

Projected Cash flow at time zero = -Increase inventory + Increase accounts payable Decrease accounts receivable

Let plug in the formula

Projected Cash flow at time zero= -$17,000 + 10,000 + 1,000 =

Projected Cash flow at time zero= -$6,000

Therefore the project's cash flow from the changes in net working capital at time zero will be -$6,000

Answer 2

The project's cash flow from the changes in net working capital at time zero is  -$6,000.

Given that,

• A project is expected to increase inventory by $17,000, increase accounts payable by $10,000, and decrease accounts receivable by $1,000.

Based on the above information, the calculation is as follows:

Projected Cash flow at time zero = Increase inventory + Increase accounts payable + Decrease accounts receivable

= -$17,000 + 10,000 + 1,000

= -$6,000

Therefore we can conclude that the project's cash flow from the changes in net working capital at time zero is  -$6,000.

Learn more: brainly.com/question/13549064