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XYZ is considering a project that would last for 3 years and have a cost of capital of 1 9 . 6 0 percent. The

XYZ is considering a project that would last for 3 years and have a cost of capital of 19.60 percent. The relevant level of net working capital for the project is expected to be $1,883.30 immediately (at year 0); $4,610.00 in 1 year; $13,700.00 in 2 years; and $0.00 in 3 years. Relevant expected revenue, costs, depreciation, and cash flows from capital spending in years 0,1,2, and 3 are presented in the following table. The tax rate is 54.30 percent. What is the net present value of this project?.
Year 0 Year 1 Year 2 Year 3
Revenue $ 0.00 $11,900.00 $14,000.00 $10,600.00
Costs $ 0.00 $3,980.00 $3,870.00 $4,800.00
Depreciation $ 0.00 $1,630.00 $2,400.00 $2,300.00
Cash flows from capital spending $-6,700.00 $1,550.00 $ 640.00 $4,010.00
a) $5070.66(plus or minus $10)
b) $7683.28(plus or minus $10)
c) $685.53(plus or minus $10)
d) $10090.44(plus or minus $10)
e) None of the above is within $10 of the correct answer

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