Brennan's Boats Is Considering a Project Which Will Require Additional

Multiple Choice

Brennan's Boats is considering a project which will require additional inventory of $128,000 and will also increase accounts payable by $47,000 as suppliers are willing to finance part of these purchases. Accounts receivable are currently $85,000 and are expected to increase by 10% if this project is accepted. What is the initial project cash flow needed for net working capital?

A) $88,000
B) $79,500
C) $96,500
D) $190,300
E) $190,500