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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 $
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 $ 210,000 Working capital required $ 50 , Annual net cash inflows $ 100,000 Maintenance and repairs in third year $ 40,000 Salvage value of equipment in fourth year $ 35,000 Click here to view Exhibit 14B-1 and Exhibit 148-2. to determine the appropriate discount factor(s) using the tables provided. The working capital will be released at the end of the project and the company's required rate of return is 16%. The net present value of the project is closest to: Multiple Choice $50,980 $41,080 S66,980 S(36,780)
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