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Acme Company is expanding and expects operating cash flows of $ 6 0 , 0 0 0 a year for 4 years as a result.

Acme Company is expanding and expects operating cash flows of $60,000 a year for 4 years as a result. This expansion requires $200,000 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires a $5,000 investment in net working capital (assume NWC will be recovered at the end of the project). What is the net present value of this expansion project at a required rate of return of 10 percent?

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