Hunter's Hut Is Considering a Project That Will Require Additional

Multiple Choice

Hunter's Hut is considering a project that will require additional inventory of $48,000 and will increase accounts payable by $22,000. Accounts receivable is currently $297,000 and is expected to increase by four percent if this project is accepted. What is the project's initial cash flow for net working capital?

A) −$37,880
B) −$81,880
C) −$42,250
D) −$66,550
E) −$27,550