Question: A project is going to require an initial investment in new working capital (NWC) of $40,000. The project is expected to last 5 years, and
A project is going to require an initial investment in new working capital (NWC) of $40,000. The project is expected to last 5 years, and the firm will recognize recovery of the NWC investment at the end of the projects life. What is the present value of the NWC investment if r = 10% compounded annually?
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