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Note: This is a question form the capital budgeting chapter (Ch. 10)! Assume that you are looking at an investment opportunity that offers an annual

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Note: This is a question form the capital budgeting chapter (Ch. 10)! Assume that you are looking at an investment opportunity that offers an annual operating cash flow of $40,000 per year for 4 years. The initial investment to purchase the necessary equipment is $200,000. You assume that you can sell the equipment at the end of 4 years for $70,000. Also, initially there is a need for an investment in net working capital of $15,000, but this increases to $35,000 in year 1. If your required rate of return is 5% and the tax rate is 35%, what is the NPV

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