Change in net working capital


You are considering adding a microbrewery onto one of your firm's already existing restaurants. This will entail an increase in inventory of $8000, an increase in accounts payable of $2500, and an increase in property, plant, and equipment of $40,000. All other accounts will remain unchanged. The change in net working capital resulting from the addition of the microbrewery is:

a. 45500
b. 10500
c. 6500
d. 5500

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Finance Basics: Change in net working capital
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