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Question(s) / Instruction(s):

ABC Inc. is considering additional production facilities and expects inventory to increase by $4 million, accounts receivable by $2 million, and accounts payable by $2 million. If other working capital accounts stay the same, what is the incremental cash flow associated with this initial net working capital investment?
Answer
a. $ 8 million
b. $ 6 million
c. $ 0
d. $ 4 million

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