(Answered) A company is considering additional production facilities

Management Studies

A company is considering additional production facilities and expects inventory to increase by $4 million, accounts receivable by $6 million, and accounts payable by $3 million. If other working capital accounts stay the same, what is the incremental cash flow associated with this initial net working capital investment.

a) $7 million

b) $5 million

c) $13 million

d) $10 million

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