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Need all explanation Q2: Farah Corporation has provided the following data concerning a proposed investment project: Initial investment ....... $440,000 Life of the project ......

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Q2: Farah Corporation has provided the following data concerning a proposed investment project: Initial investment ......". $440,000 Life of the project ...... 8 years Working capital required...... $14,000 Annual net cash inflows ......... $88,000 Salvage value ....... $44,000 The company uses a discount rate of 11%. The working capital would be released at the end of the project. Required: Compute the net present value of the project. Q3: Dunay Corporation is considering investing $810,000 in a project. The life of the project would be 9 years. The project would require additional working capital of $24,000, which would be released for use elsewhere at the end of the project. The annual net cash inflows would be $162,000. The salvage value of the assets used in the project would be $41,000. The company uses a discount rate of 17%. Required: Compute the net present value and profitability index of the project

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