Problem:
Junior's has a new project in mind that will increase accounts receivable by $16500, increase accounts payable by $14000, increase fixed assets by $10000, and decrease inventory by $2000.
Requirement:
Question: What is the amount the firm should use as the initial cash flow attributable to net working capital when it analyzes this project?
- $500
- $10,500
- $28,500
- $30,000
- $38,500
Note: Please provide through step by step calculations.