Question
Parks Corporation is considering an investment proposal in which a working capital investment of $25,000 would be required. The investment would provide cash inflows of
Parks Corporation is considering an investment proposal in which a working capital investment of $25,000 would be required. The investment would provide cash inflows of $4,000 per year for six years. The working capital would be released for use elsewhere when the project is completed. If the company's discount rate is 10%, the investment's net present value is closest to (Ignore income taxes.): To determine the appropriate discount factor(s) using the Present value Tables provided in Exhibit 7B-1 and Exhibit 7B-2 on page 399-400 in your textbook. Group of answer choices $11,280 $2,000 $6,520 $17,420
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