Grady-White Boats, Inc. is considering a project that will require additional inventory of $1,129,000 In addition, pursuing this project will also increase accounts payable by $450,000 as suppliers are willing t finance part of these purchases. Accounts receivable are currently $800,000 and are expected to increase by 10% if this project is accepted. The firm's cash requirements are not anticipated to change What is the incremental change to net working capital as a result of accepting this project? OA. $1,479,000 OB. $1,659,000 OC. $759,000 O D. $599,000 OE. $1,499,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
Problem 9P
icon
Related questions
Question
Grady-White Boats, Inc. is considering a project that will require additional inventory of $1,129,000. In addition, pursuing this project will also increase accounts payable by $450,000 as suppliers are willing to
finance part of these purchases. Accounts receivable are currently $800,000 and are expected to increase by 10% if this project is accepted. The firm's cash requirements are not anticipated to change
What is the incremental change to net working capital as a result of accepting this project?
OA. $1,479,000
OB. $1,659,000
OC. $759,000
OD. $599,000
OE. $1.499,000
Transcribed Image Text:Grady-White Boats, Inc. is considering a project that will require additional inventory of $1,129,000. In addition, pursuing this project will also increase accounts payable by $450,000 as suppliers are willing to finance part of these purchases. Accounts receivable are currently $800,000 and are expected to increase by 10% if this project is accepted. The firm's cash requirements are not anticipated to change What is the incremental change to net working capital as a result of accepting this project? OA. $1,479,000 OB. $1,659,000 OC. $759,000 OD. $599,000 OE. $1.499,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Break-even Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT