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The Lunch Counter is expanding and expects operating cash flows of $62,100 a year for six years as a result. This expansion requires $38,400 in
The Lunch Counter is expanding and expects operating cash flows of $62,100 a year for six years as a result. This expansion requires $38,400 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $2,200 of net working capital throughout the life of the project. What is the net present value of this expansion project at a required rate of return of 15.6 percent? $194,736.05 $201,033.33 $191,589.61 $192,536.05 $193,132.81
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