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A permanent working capital investment of $100,000 is expected to produce an annual after-tax cash inflow of $20,000 for many years and has a cost
A permanent working capital investment of $100,000 is expected to produce an annual after-tax cash inflow of $20,000 for many years and has a cost of capital of 15%. Calculate the net annual benefit of the proposed permanent working capital investment.
A. $15,000.
B. $33,333.
C. $20,000.
D. $5,000.
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