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Mc 6 points 3 COTB MC Qu. 14-57 (Algo) Assume that a company is considering... Assume that a company is considering a capital investment project
Mc 6 points 3 COTB MC Qu. 14-57 (Algo) Assume that a company is considering... Assume that a company is considering a capital investment project with a four-year time horizon and the following cash flows: Cost of new equipment Working capital required Annual net cash inflows Maintenance and repairs in third year $ 40,000 Salvage value of equipment in fourth year $ 35,000 Click here to view Exhibit 14B-1 and Exhibit 14B-2; to determine the appropriate discount factor(s) using the tables provided. The working capital will be released at the end of the project and the company's required rate of return is 17%. The net present value of the project is closest to: 01:59:09 Multiple Choice $44,730. $60,730.
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