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Club Corp is considering a project that would last for 3 years and have a cost of capital of 1 5 . 2 0 percent.

Club Corp is considering a project that would last for 3 years and have a cost of capital of 15.20 percent. The project would require an initial investment in equipment if $256,000. The relevant level of net working capital for the project is expected to be $33,000 immediately (at year 0); $15,000 in 1 year; $32,000 in 2 years; and $0 in 3 years. Relevant operating cash flows are expected to be $113,000 each year of the project and the after-tax cash flow from selling the equipment at the end of the project is expected to be $34,000. What is the net present value of this project?

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