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Initial investment $450,000 Working capital... $16,000 Annual cash flow .............. $133.000 per year Salvage value at the end of the project . $6.000 Expected life
Initial investment $450,000 Working capital... $16,000 Annual cash flow .............. $133.000 per year Salvage value at the end of the project . $6.000 Expected life of the project. 3 years Discount rate.......... 8% Kingsolver Corporation has provided the data shown concerning an investment project that it's considering. The working capital would be released for use elsewhere at the end of the project. The net present value of the project is closest to O A) $(51,000). O B) $(105, 791). O C) $(89,791). O D) $(118,495)
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