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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 17%. The net present value of the project is closest to
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