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Save Score: 0 of 1 pt P13-17 (similar to) 9 of 12 completa) HW Score: 11 11% 1 of 9 pts Questions Help Working capital
Save Score: 0 of 1 pt P13-17 (similar to) 9 of 12 completa) HW Score: 11 11% 1 of 9 pts Questions Help Working capital and capital budgetiny Fartuck's Tea Shops is thinking about opening another lea shop. The incremental cash flow (not including the working capital investment for the first five years is as follows. Click on the icon in order to copy its content into a spreadsheet Il capital cost $3.500.000 Operating cash flow for each year - $1.000.000 Redgry of capital assets after five years = $240.000 The hurdle rate for this project is 11% the initial cost of working capital is $500,000 for items such as teapots, teacuDS, saucers, and napkins, should Farbuck's open this new shop it it will be in business for only five years? What is the most it can invest in working capital and still have a positive ret present value? Should Farbuck's open this new shop it it will be in business for only five years? (Select the best response.) OA Yes. Farbucks should open the new shop because the project's NPV is $141,804 OB. Yes Farbuck's should open the new shop because the projects NPV is $135,051 c. No. Fartuck's should not open the new shop because the project's NPV is -5141,804 D. No. Fartuck's should not open the new shop because the project's NPV is - $135,051
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