QUESTION 33

A project is expected to create operating cash flows of $35.000 a year for four years. The initial cost of the fixed assets is $100,000. These assets will be worthless at the end of (he project. An additional $5,000 of net working capital will be required at time 0 and this will be released at the end of the project. What is the project's net present value if the required rate of return is 11 percent? a. $1, 879.25 b. $3, 585.60 c. $6, 879.25