Question 27 (1 point) You have been provided with the following information. Your firm is considering a new project. The will spend $1,730,000 on a new piece equipment. The expected salvage value of the equipment is $540,000. The firm will make an initial investment in operating net working capital of $175,000. Operating net working capital will remain at this level throughout the life of the project. The investment in operating net working capital will be recovered at the end of the project. The number of units produced each year is 104,000. The price per unit is $19.10. Variable cost per unit is $9.80. The fixed cost per year are $107,000. The CCA rate is 68%, the tax rate is 19%, the required rate of return is 8.40%. The project will last 5 years. What is the present value of the operating net working capital recovered at the end of the project? $37,414.64 $94,705.82 $116,920.76 $107,860.48 Previous Page Next Page Page 27 of 30