Question: Green Forest Technology is considering a project that would last for 3 years and have a cost of capital of 10.44 percent. The relevant level
Green Forest Technology is considering a project that would last for 3 years and have a cost of capital of 10.44 percent. The relevant level of net working capital for the project is expected to be 24,000 dollars immediately (at year 0); 8,000 dollars in 1 year; 29,000 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?
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| Time 0 | Year 1 | Year 2 | Year 3 |
| Operating cash flows (in dollars) | 0 | 76,000 | 69,000 | 79,000 |
| Cash flows from capital spending (in dollars) | -160,000 | 0 | 0 | 15,000 |
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