A project is expected to increase inventory by $17,000, increase accounts payable by $10,000, and decrease accounts receivable by $1,000. What is the project's cash flow from the changes in net working capital at time zero (today)?

-$6,000

Explanation:

Computation of the project's cash flow from net working capital at time zero

Using this formula

Projected Cash flow at time zero = -Increase inventory + Increase accounts payable Decrease accounts receivable

Let plug in the formula

Projected Cash flow at time zero= -$17,000 + 10,000 + 1,000 =

Projected Cash flow at time zero= -$6,000

Therefore the project's cash flow from the changes in net working capital at time zero will be -$6,000

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