Question: 3. XYZ is considering a project that would last for 3 years and hare a cost of capital of 19.90 percent. The relevant level of
3. XYZ is considering a project that would last for 3 years and hare a cost of capital of 19.90 percent. The relevant level of net working capital for the project is expected to be $1,649.00 immediately per year 0) $4,530.00 in 1 year, $15,100.00 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 50.20 percent. What is the net present value of this project? Year 0 Year 1 Year 2 Year 3 Revenue S 0.00 $11,600.00 $10,800.00 $12,300.00 Costs $0.00 $3,570.00 $3,870.00 $2,900.00 Depreciation. $ 0.00 $1,980,00 $2,340.00 $1,900.00 Cash flows from capital spending S-6,510.00 $1,410.00 $ 600.00 $3,660.00 A.$8007.06 (plus or minus $10) B. $832.39 (plus or minus $10) C. S10501.87 (plus or minus $10) D. S5213.76 (plus or minus $10) E. None of the above is within $10 of the cored
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