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MC algo 10-27 Cash Flows And NPV Bruno's Lunch Counter is expanding and expects operating cash flows of $25,300 a year for 6 years as
MC algo 10-27 Cash Flows And NPV Bruno's Lunch Counter is expanding and expects operating cash flows of $25,300 a year for 6 years as a result. This expansion requires $77,000 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $6,200 of net working capital throughout the life of the project. What is the net present value of this expansion project at a required rate of return of 11 percent?
Multiple Choice
a) $36,796
b) $27,147
c)$30,033
d) $32,535
E) $34,859
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