Question: Blue Eagle Technology is considering a project that would last for 3 years and have a cost of capital of 10.12 percent. The relevant level

 Blue Eagle Technology is considering a project that would last for

Blue Eagle Technology is considering a project that would last for 3 years and have a cost of capital of 10.12 percent. The relevant level of net working capital for the project is expected to be 20,000 dollars immediately (at year 0); 5,000 dollars in 1 year; 31,000 dollars in 2 years; and 0 dollars in 3 years. Relevant expected operating cash flows and cash flows from capital spending in years 0, 1, 2, and 3 are presented in the following table. What is the net present value of this project? Time O Year 1 Year 2 Year 3 1 74,000 Operating cash flows (in dollars) Cash flows from capital spending (in dollars) 0 -142,000 56,000 0 69,000 0 L 1 16,000 Number

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