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(Ignore income taxes in this problem.) Your Company is considering a project with a 6-year life. Your required rate of return is 14%. What is
(Ignore income taxes in this problem.) Your Company is considering a project with a 6-year life. Your required rate of return is 14%. What is the net present value of the project?
|
| Project |
| Cost of equipment needed now | $65,000 |
| Working capital investment needed now | 50,000 |
| Annual cash operating inflows | 25,000 |
| Salvage value of equipment in 6 years | 0 |
Group of answer choices
$57,225.
$11,865.
($17,775).
$5,025
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