What is the effect on the npv of the project solely due to


Project requires additional accounts receivable of $1,000,000 and additional inventory of $500,000. It results in additional accounts payable of $800,000. Net working capital will return to its normal level following the 3-year project. What is the effect on the NPV of the project solely due to this investment in net working capital, assuming a 10% required rate of return?

($497,370)

$497,370

($174,080)

$174,080

$746,056

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Financial Management: What is the effect on the npv of the project solely due to
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