The Apple Company is considering investing in an investment that requires $100,000 plus an increased working capital of $10,000. The investment has a 4-year life. Annual after-tax cash flows from operations will be $40,000 for each of the 4-year .The working capital will be released at the end of the 4thyear. What is the net present value of the investment if the required rate of return is 12%?

The present value of a single amount over four years at 12% is 0.6355.

The present value of an annuity over four years at 12% is 3.0373.

Group of answer choices

$16,758

$27,849

$17,849

$40,992

Information pertaining to net cash flow after tax of an investment that has a net initial cost of $120,000 is presented below:

Year 1$10,000Year 4$20,000

Year 2$40,000Year 5$60,000

Year 3$30,000Year 6$10,000

Assume that cash flow is received evenly throughout the year, the payback period of the investment is:

5 years and 12 months.

4 years and 4 months

4 years and 7 months.

5 years and 3.33 months.