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Green Forest Industrial is considering a project that would last for 3 years and have a cost of capital of 12.74 percent. The relevant level
Green Forest Industrial is considering a project that would last for 3 years and have a cost of capital of 12.74 percent. The relevant level of net working capital for the project is expected to be 17,000 dollars immediately (at year 0); 5,000 dollars in 1 year; 36,000 dollars in 2 years; and 0 dollars in 3 years. Relevant expected operating cash flows and cash flows from capital spending in years 0, 1, 2, and 3 are presented in the following table. What is the net present value of this project?
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