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Bruno's Lunch Counter is expanding and expects operating cash flows of $27,300 a year for 4 years as a result. This expansion requires $65,000 in
Bruno's Lunch Counter is expanding and expects operating cash flows of $27,300 a year for 4 years as a result. This expansion requires $65,000 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $4,000 of net working capital throughout the life of the project. What is the net present value of this expansion project at a required rate of return of 14 percent? Multiple Choice $12,913 $15,756 $16,882 $14,544 $17,820
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