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Bruno's Lunch Counter is expanding and expects operating cash flows of $28,600 a year for 5 years as a result. This expansion requires $69,000 in
Bruno's Lunch Counter is expanding and expects operating cash flows of $28,600 a year for 5 years as a result. This expansion requires $69,000 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $6,000 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 13 percent? a. $31,593 b. $28,849 c. $25,593 d. $36,908 e. $22,336
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