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COTB MC Qu. 12-57 (Algo) Assume that a company is considering... Assume that a company is considering a capital investment project with a four-year
COTB MC Qu. 12-57 (Algo) Assume that a company is considering... Assume that a company is considering a capital investment project with a four-year time horizon and the following cash flows: Cost of new equipment Working capital required Annual net cash inflows Maintenance and repairs in third year Salvage value of equipment in fourth year $210,000 $ 50,000 $ 100,000 $ 40,000 $ 35,000 Click here to view Exhibit 12B-1 and Exhibit 128-2, to determine the appropriate discount factor(s) using the tables provided. The working capital will be released at the end of the project and the company's required rate of return is 12%. The net present value of the project is closest to: Multiple Choice $(65,080). $95.280.
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