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A project is expected to create operating cash flows of $32,500 a year for three years. The initial cost of the fixed assets is $67,000.
A project is expected to create operating cash flows of $32,500 a year for three years. The initial cost of the fixed assets is $67,000. These assets will be worthless at the end of the project. An additional $4,000 of net working capital will be required throughout the life of the project. What is the project's net present value if the required rate of return is 15 percent?
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