project will result in a $25,000 decrease in accounts receivable and require an increase in inventory levels by $10,000 to $95,000. What is the net cash flow for capital budgeting purposes? Group of answer choices -$25,000 -$70,000 -$10,000 $15,000

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 16EB: Project Y cost $8,000 and will generate net cash inflows of $1,500 in year one, $2,000 in year two,...
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A project will result in a $25,000 decrease in accounts receivable and require an increase in inventory levels by $10,000 to $95,000. What is the net cash flow for capital budgeting purposes?

Group of answer choices

-$25,000

-$70,000

-$10,000

$15,000

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