Cash flows associated with the change to net working capital

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Reference no: EM131821488

Your firm currently has: $5,000 in cash, $10,000 in accounts receivable, $7, 500 in inventory, and $100,000 in PP&E. You also have $12, 500 in accounts payable and $75,000 in long-term debt You are considering undertaking a new project. If you do the project, among other changes you predict your cash will rise to $7, 500 and inventory to $10,000, while accounts receivable would drop in this scenario to $8,000 and PP&E to $90,000. Accounts payable would increase to $15,000. Assuming you accept the project, what are the cash flows associated with the change(s) to net working capital?

Reference no: EM131821488

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