3. XYZ is considering a project that would last for 3 years and have a cost of capital of 22.70 percent. The relevant level of

net working capital for the project is expected to be $2,109.50 immediately (at year 0); $4,580.00 in 1 year; $13,200.00

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 52.50 percent. What is the net present value

of this project?

O $6181.28 (plus or minus $10)

O $234.21 (plus or minus $10)

O $9872.20 (plus or minus $10)

O $4466.43 (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 22.70 percent. The relevant level of net working capital for the project is expected to be $2,109.50 immediately (at year 0): $4,580.00 in 1 year; $13,200.00 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 52.50 percent. What is the net present value of this project? $6181.28 (plus or minus $10 ) $234.21 (plus or minus $10 ) $9872.20 (plus or minus $10 ) $4466.43 (plus or minus $10 ) None of the above is within $10 of the correct