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The information below relates to the purchase of equipment: Investment in the project $10,000 Net annual cash inflows 2,400 Working capital required 5,000 Salvage value
The information below relates to the purchase of equipment: Investment in the project $10,000 Net annual cash inflows 2,400 Working capital required 5,000 Salvage value of the equipment 1,000 8 years Life of the project At the completion of the project, the working capital will be released for use elsewhere. Compute the net present value of the project, using a discount rate of 10%: $606. $8,271 ($1.729). $1,729. Onts
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