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LYP Company is considering an investment project that has the following information available: $180,000 $ 62,500 $ 32,250 Initial investment Annual cost savings Repair needed

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LYP Company is considering an investment project that has the following information available: $180,000 $ 62,500 $ 32,250 Initial investment Annual cost savings Repair needed in four years Working capital needed now Life of project Discount rate ? 7 years 14% Ignore the effects of taxes in your calculations. Assume the working capital needed now will be released for investment elsewhere at the end of the project. The net present value of this investment was calculated to be $55,841. Calculate the amount of the working capital needed now. Do not place a minus sign in front of your answer when entering it into carmeri. To answer this question use the present value table factors given below. No credit will be awarded for this question using a means other than the table factors given below to answer this question. Factors from the present value of a lump sum table for: i = 14% n = 5 n = 6 @.456 n = 7 0.400 @.675 @.592 @.519 Factors from the present value of an annuity table for: 1 = 14% n = 3 n = 5 3.433 n = Z 4.280 2.914 3.889 2.327

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