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Bruno's Lunch Counter is expanding and expects operating cash flows of $23,900 a year for 5 years as a result. This expansion requires $66,000 in
Bruno's Lunch Counter is expanding and expects operating cash flows of $23,900 a year for 5 years as a result. This expansion requires $66,000 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $5,600 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 12 percent?
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$24,693
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$17,732
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$20,154
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$23,393
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$21,834
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