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Bruno's Lunch Counter is expanding and expects operating cash flows of $30,100 a year for 6 years as a result. This expansion requires $95,400 in
Bruno's Lunch Counter is expanding and expects operating cash flows of $30,100 a year for 6 years as a result. This expansion requires $95,400 in new fixed assets. These assets will be worth 40,000 at the end of the project (Tax rate is 25%). In addition, the project requires $7,400 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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