Dwight Co. has determined the net present value of a proposed eight-year project to be $24,000 in order to provide a 16% rate of return. Dwight failed to consider a requirement for an additional $40,000 cash outlay for working capital, which would be recoverable at the end of the project. Assume the present value of $1 at 16% to be received after 8 periods is 0.30500. What would the net present value of the project be after considering working capital? 

A. $11,800 

B. $(3,800) 

C. $(16,000) 

D. $(27,800)

Answer rating: 100% (QA)

Net Present value Present value of Present Value NPV of cashoutflas Cash In... View the full answer