10. XYZ is considering a project that would last for 3 years and have a cost of capital of 23,60 percent. The relevant level of net working capital for the project is expected to be $1,817.50 immediately (at year 0); $4,500.00 in 1

year; $13,800.00 in 2 years; and $0.00 in 3 years. Relevant expected revenue, costs, depreciation, and cash flows from capital spending in years 0, 1, 2, and 3 are presented in the following table. The tax rate is 45.90

percent. What is the net present value of this project?

Year 0

Year 1

Year 2

Year 3

Revenue

$0.00 $11,400.00 $12,600.00 $11,300.00

Costs

$0.00 $3,540.00 $3,700.00 $2,600.00

Depreciation

0.00 $2,360.00 $1,560 00 $2,600.00

Cash flows from capital spending $-5,440.00 $1,070.00 $ 300.00 $4,420.00

O $1950.28 (plus or minus $10)

O $8294.88 (plus or minus $10)

O $11791.73 (plus or minus $10)

O $6257.76 (plus or minus $10)

O None of the above is within $10 of the correct answer

XYZ is considering a project that would last for 3 years and have a cost of capital of 23.60 percent. The relevant I year; $13,800.00 in 2 years; and $0.00 in 3 years. Relevant expected revenue, costs, depreciation, and cash flows percent. What is the net present value of this proiect?. $1950.28 (plus or minus $10 ) $8294.88 (plus or minus $10 ) $11791.73 (plus or minus $10 ) $6257.76 (plus or minus $10 ) None of the above is within $10 of the correct