Question: I need solution for this Asap A Avo lite = Q2. It is estimated that a project will produce operating cash flows of $60,000 a

 I need solution for this Asap A Avo lite = Q2.

I need solution for this Asap

A Avo lite = Q2. It is estimated that a project will produce operating cash flows of $60,000 a year for four years. During the life of the project, inventory will be lowered by $20,000 and accounts receivable will increase by $25,000. Accounts payable will decrease by $10,000. The project requires the purchase of equipment at an initial cost of $200,000. The equipment will be depreciated straight-line to a zero-book value over the life of the project. The equipment will be salvaged at the end of the project creating a $30,000 after- tax cash flow. At the end of the project, net working capital will return to its normal level. What is the net present value of this project given a required return of 12%? Show detailed calculations (20 marks)

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