Question: hi please help with these practice problems! A company is considering a project with the following characteristics: Initial investment: $8,000 Working capital required: $1,000 Annual
A company is considering a project with the following characteristics: Initial investment: $8,000 Working capital required: $1,000 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.) N A company is considering a 2-year project with the following cash flows: Initial investment: $900 Cash inflow, year 1: $510 Cash inflow, year 2: $920 . Salvage value, year 2: $290 The company uses straight-line depreciation to depreciate the initial investment cost. In other words, annual depreciation is initial investment-salvage value)/2. The company's discount rate is 9%. What is the Net Present Value of this project? (Use the present values tables at the beginning of the exam for any present value calculations Don't round intermediate calculations. Round your final answer to the nearest dollar)
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