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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 Maintenance and repairs in third year Salvage value of equipment in fourth year $ 210,000 $ 50,000 $ 100,000 $ 40,000 $ 25,000 Click here to view Exhibit 14B-1 and Exhibit 14B-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 15%. The net present value of the project is closest to: The working capital will be released at the end of the project and the company's required rate of return is 15%. The net present value of the project is closest to: Multiple Choice O $52,080. $(37,880). $68,080. $42,180
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