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An office building is expected to create operating cash flows of $28,000 a year for three years, based on tenants' rental income. The purchase of
An office building is expected to create operating cash flows of $28,000 a year for three years, based on tenants' rental income. The purchase of the fixed assets for this building will cost $58,000. These assets will have no value at the end of the project. An additional $3,000 of net working capital will be required throughout the life of the project. Calculate the net present value of this project if the required rate of return is 9 percent? Multiple Choice $12,192.80 $15,192.80 $3,000.00 $9,876.25 $9,192.80
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