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Perini is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 25 percent. Assume all sales revenue

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Perini is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 25 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project. Suppose the appropriate discount rate is 14 percent. Determine the net working capital spending for Year 4 then calculate the NPV of the project. What is the project NPV? Year 0 Year 1 Year 2Year 3 Year 4 Investment Sales revenue Operating cost Depreciation Net working capital spending $82,000 $58,000 19,000 20,500 2,000 $58,500 $59,200 19,20019,500 20,500 20,500 1,200 $60,200 20,000 20,500 8,500 1,700 $11,289.84 $15,610.18 $13,347.55 $12,296.88 $14,780.65

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