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Bruno's Lunch Counter is expanding and expects operating cash flows of $21,700 a year for 5 years as a result. This expansion requires $63,000 in
Bruno's Lunch Counter is expanding and expects operating cash flows of $21,700 a year for 5 years as a result. This expansion requires $63,000 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $5,400 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 11 percent?
A. $21,075
B. $17,201
C. $15,006
D. $19,965
E. $18,634
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