A new inventory system will immediately reduce inventory levels by $100,000.
A new inventory system will immediately reduce inventory levels by $100,000. If this reduction is permanent and the cost of capital is 13%, how does the net working capital change affect company value?
Select one:
A. NPV increases by $13,000.
B. Company value increases by $100,000.
C. Company value will not change.
D. Company value increases by $769,231.
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