Question
A project will produce operating cash flows of $47,619 a year for four years. During the project's life, inventory will be lowered by $37,453, and
A project will produce operating cash flows of $47,619 a year for four years. During the project's life, inventory will be lowered by $37,453, and accounts receivable will increase by $16,881. Accounts payable will decrease by $11,899. The project requires the purchase of equipment at an initial cost of $144,432. The equipment will be depreciated straight-line to a zero book value over the project's life. The equipment will be salvaged at the end of the project, creating a $26,532 after-tax cash flow. At the end of the project, net working capital will return to its normal level. What is the net present value of this project given a required return of 10%? Round your response to the dollar, and input without the $ sign.
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