If a Project Is Expected to Increase Inventory by $15,000

Multiple Choice

If a project is expected to increase inventory by $15,000, increase accounts payable by $10,000, and decrease accounts receivable by $1,000, what effect does working capital have during the life of the project?

A) Increases investment by $4,000
B) Increases investment by $5,000
C) Increases investment by $6,000
D) Working capital has no effect during the life of the project