The additional net working capital

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A six-year project for Little Egypt, Inc. results in additional accounts receivable of $150,000, additional inventory of $50,000, and additional accounts payable of $80,000 today. What is the change in the NPV of a project solely due to the additional net working capital (NWC) needs? Assume a 14% discount rate, and the recovery of net working capital at the end of the project.

A) a decrease of $34,606

B) a decrease of $42,670

C) a decrease of $120,000

D) a decrease of $58,689

Reference no: EM13943049

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