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A project is expected to create operating cash flows of $36,000 a year for four years. The initial cost of the fixed assets is $100,000.
A project is expected to create operating cash flows of $36,000 a year for four years. The initial cost of the fixed assets is $100,000. These assets will be worthless at the end of the project. An additional $5,000 of net working capital will be required at time 0 and this will be released at the end of the project. What is the preject's net present value if the required rate of return is 10 percent? A. $2,379.28 B. $5,794.87 C. $6,879.25 D. $12,530.22 E. 14,349.18
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