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Assume that a company is considering a capital investment project with a four-year time horizon and the following cash flows: Cost of new equipment Working

Assume that a company is considering a capital investment project with a four-year time horizon and the following cash flows: Cost of new equipment Working capital required Annual net cash inflows $ 210,000 $ 50,000 $ 100,000 $ 40,000 Salvage value of equipment in fourth year $ 35,000 Maintenance and repairs in third year The working capital will be released at the end of the project and the company's required rate of return is 20%. The net present value of the project is closest to: Multiple Choice $42,510. $(12,310)

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