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Calculation of Change in net Working Capital-Multiple Choice Question
Question
You are considering adding a carbonated water-dispenser onto one of your firm's existing outlets. This will entail an increase in inventory of $8,000, an increase in accounts payable of $2,500, and an increase in property, plant, and equipment of $40,000. All other accounts will remain unchanged. The change in net working capital resulting from the addition of the carbonated water-dispenser is:
A) $45,500
B) $10,500
C) $6,500
D) $5,500
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