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Assume that a company has provided the following information regarding a capital investment opportunity Initial investment in equipment Initial investment in working capital Estimated
Assume that a company has provided the following information regarding a capital investment opportunity Initial investment in equipment Initial investment in working capital Estimated annual sales Estimated annual cash operating expenses $ 160,000 $ 25,000 $ 150,000 $ 73,000 Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. The equipment has a four-year useful life and no salvage value. The working capital will be released at the end of the project. The company's tax rate is 30%. Assuming a discount rate of 15%, the net present value of this investment is closest to:
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