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NWC, Inc, is considering a seven-year project that has the potential to result in additional accounts receivable of $120,000, additional inventory of $30,000, and additional accounts payable of $70,000 today. Assume a 12% discount rate, and the typical expected recovery of the NWC investment. What is the change in the NPV of a project solely due to the additional net working capital (NWC) needs?

a) A decrease of $120,483

b) A decrease of $99,517

c) A decrease of $36,188

d) No change since the investment is full recovered.

Financial Management, Finance

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