Question
Denny Associates has been offered a four-year contract to supply the computing requirements for a local bank. Cash flow information: The working capital would be
Denny Associates has been offered a four-year contract to supply the computing requirements for a local bank. Cash flow information:
The working capital would be released at the end of the contract. Denny Associates requires a 14% return.
What is the net present value of the contract with the local bank?
A
$150,000
B
$28,230
C
$92,340
D
$132,916
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Financial Accounting An Introduction To Concepts Methods And Uses
Authors: Clyde P. Stickney, Roman L. Weil
8th Edition
0030182689, 978-0030182686
