A Project Under Consideration by Bizet Co

Multiple Choice

A project under consideration by Bizet Co.will require the purchase of machinery for $50,000 and additional inventory for $15,000.Accounts receivable will increase by $12,000 and accounts payable by $14,000.Liability insurance will increase by $2,500 per year and utilities expense by $1,500 per year.What is the investment in working capital required by this project?

A) $77,000
B) $41,000
C) $13,000
D) $4,000