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uv Working capital and capital budgeting. Farbuck's Tea Shops is thinking about opening another tee shop. The incremental canh Sow (not including the working capital

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uv Working capital and capital budgeting. Farbuck's Tea Shops is thinking about opening another tee shop. The incremental canh Sow (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 Initial capital cost = $3,500,000 Operating cash flow for each year = $1,000,000 Recovery of capital assets after five years = $250,000 The hurdle rate for this project is 11%. If the initial cost of working capital is $520,000 for items such as trapets, teacups, suces, and rapins, should Futuck's open this new shop if 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 proantu? Should Farbuck's open this new shop if it will be in business for only five year? (Select the best response) O A No. Farbuck's should not open the new shop because the project's NPV I. -5146,141 B. Yes. Farbuck's should open the new shop because the project's NPV in $132,855 OC. Yes. Farbuck's should open the new shop because the project's NPV is $146,141 D. No. Farbuck's should not open the new shop because the project's NPV is - $132 855, What is the most it can invest in working capital and still have a positive net present value? (Round to the nearest dollar)

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