A company is considering a project with the following characteristics: Initial investment: $8,000 $2,000 Working...

  

Transcribed Image Text:

A company is considering a project with the following characteristics: • Initial investment: $8,000 $2,000 Working capital required: • Annual net cash flows for 4 years: $4,000 per year ● The working capital will be released at the end of the 4-year project. The company's discount rate is 8%. What is the Net Present Value of this project? (Use the present values tables in your packet for any present value calculations. Don't round intermediate calculations. Round your final answer to the nearest dollar.) A company is considering a project with the following characteristics: • Initial investment: $8,000 $2,000 Working capital required: • Annual net cash flows for 4 years: $4,000 per year ● The working capital will be released at the end of the 4-year project. The company's discount rate is 8%. What is the Net Present Value of this project? (Use the present values tables in your packet for any present value calculations. Don't round intermediate calculations. Round your final answer to the nearest dollar.)

Answer rating: 100% (QA)

To calculate the Net Present Value NPV of the project we need to discount the cash flows including t... View the full answer