The following table tracks the main components of working capital over the life of a four-year project.202420250194,000097,00036,000 0Accounts receivableInventoryAccounts payableNet working capitalCash flows20212021077,00026,0002022154,000132,00051,000Calculate net working capital and the cash inflows and outflows due to investment in working capital.Note: Negative answers should be indicated by a minus sign.2023229,000132,00052,0002022202320242025

Net Working CapitalNet Working Capital (NWC) is a financial tool that measures the difference…

Answered: Calculate net working capital and the…

Calculate net working capital and the cash inflows and outflows due to investment in working capital. Note: Negative answers should be indicated by a minus sign.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter13: Capital Budgeting: Estimating Cash Flows And Analyzing Risk

Section: Chapter Questions

Problem 5MC

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Question

The following table tracks the main components of working capital over the life of a four-year project.
2024
2025
0
194,000
0
97,000
36,000 0
Accounts receivable
Inventory
Accounts payable
Net working capital
Cash flows
2021
2021
0
77,000
26,000
2022
154,000
132,000
51,000
Calculate net working capital and the cash inflows and outflows due to investment in working capital.
Note: Negative answers should be indicated by a minus sign.
2023
229,000
132,000
52,000
2022
2023
2024
2025

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