Bruno's Lunch Counter is expanding and expects operating cash flows of $$32,400$ a year for $5$ years as a result. This expansion requires $$72,600$ in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires an increase of $$5,400$ of net working capital which will be recovered at the end of the project. What is the net present value of this expansion project at a required rate of return of $14$ percent?

Question $11$Answer

a$.$

$$45,533$

b$.$

$$43,627$

c$.$

$$53,393$

d$.$

$$50,453$

e$.$

$$47,993$