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A project will produce an operating cash flow of $1,704,000 a year for three years. The initial cash outlay for equipment will be $2,850,000. The
A project will produce an operating cash flow of $1,704,000 a year for three years. The initial cash outlay for equipment will be $2,850,000. The net aftertax salvage value of $350,000 will be received at the end of the project. The project requires $109,000 of net working capital that will be fully recovered. What is the net present value of the project if the required rate of return is 12 percent?
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