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Hays Company is considering a project with the following characteristics: Initial cash investment $850,000 Working capital requirement $40,000 Annual projected cash inflows $125,000 Special repairs
Hays Company is considering a project with the following characteristics:
| Initial cash investment | $850,000 |
| Working capital requirement | $40,000 |
| Annual projected cash inflows | $125,000 |
| Special repairs needed at the end of year 4 | $50,000 |
| Salvage value | $30,000 |
| Length of project | 7 years |
| Required rate of return | 11% |
Calculate the Net Present Value of the proposed investment.
PLZ SHOW STEPS. Thank You in Advance.
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