Bennington Bicycle Company is considering a project that initially requires additional inventory of $128.000. The project will also intialy decrease accounts payable by $7,000, and accounts receivable will decrease by $56,000. If the tax rate is 35%, what is the initial project cash flow needed for net working capital? O-447.400 O $72,000 O-472.000 O $79.000 O-479,000

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter11: The Cost Of Capital
Section: Chapter Questions
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Question 8
Bennington Bicycle Company is considering a project that initially requires additional inventory of $128,000. The project will also initially decrease accounts payable by $7,000, and accounts receivable
will decrease by $56.000. If the tax rate is 35%, what is the initial project cash flow needed for net working capital?
O-$47,400
O $72,000
O-472.000
O $79,000
O-$79.000
Transcribed Image Text:Question 8 Bennington Bicycle Company is considering a project that initially requires additional inventory of $128,000. The project will also initially decrease accounts payable by $7,000, and accounts receivable will decrease by $56.000. If the tax rate is 35%, what is the initial project cash flow needed for net working capital? O-$47,400 O $72,000 O-472.000 O $79,000 O-$79.000
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