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A business is considering an investment of $ 210,000 in a capital project and $ 150,000 in working capital during the first year of operation.
A business is considering an investment of $ 210,000 in a capital project and $ 150,000 in working capital during the first year of operation. The yearly cash inflow for the project is as follows: Years 1 to 3 $ 50,000 Years 4 to 7 $ 70,000 Years 8 to 12 $ 80,000 At the end of the project, the company will sell the assets for $100,000 of its value and recover the 80% of its working capital. The company's weighted average cost of capital is 10%. What is the total discounted cash inflow? $633,890 B $733,210 $516,772 D $365,340
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