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A six-year project for Little Egypt, Inc. results in additionalaccounts

Question : A six-year project for Little Egypt, Inc. results in additionalaccounts : 148572

A six-year project for Little Egypt, Inc. results in additionalaccounts receivable of $150,000, additional inventory of $50,000,and additional accounts payable of $80,000 today. What is thechange in the NPV of a project solely due to the additional networking capital (NWC) needs? Assume a 14% discount rate, and therecovery of net working capital at the end of the project. A) adecrease of $34,606 B) a decrease of $42,670 C) a decrease of$120,000 D) a decrease of $58,689 Also, answer D: a decrease of$58,689 is incorrect.

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