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.
A new inventory system will immediately reduce inventory levels by $100,000.
