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The Card Shoppe Needs to Maintain 20 Percent of Its

Question 44

Multiple Choice

The Card Shoppe needs to maintain 20 percent of its sales in net working capital.Currently,the shoppe is considering a 6-year project that will increase sales from its current level of $379,000 to $421,000 the first year and to $465,000 a year for the following 5 years of the project.What amount should be included in the project analysis for net working capital in year 6 of the project?


A) -$17,200
B) -$2,990
C) $0
D) $2,990
E) $17,200

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