Problem:

British Motor Works is reviewing its current accounts to determine how a proposed project might affect account balances. The firm estimates the project will initially require $67,000 in current assets and $32,000 in additional current liabilities. The firm also estimates the project wil require an additional $7,000 a year in current assets for each one of the four years of the project.

Required:

Question: How much net working will the firm recoup at the end of the project assuming that all net working capital can be recaptured?

Note: Explain all steps comprehensively.