Question: please include all steps, with financial calculator steps Question 18 An 8-year project requires an initial investment of $2 million. It increases a company's annual
Question 18 An 8-year project requires an initial investment of $2 million. It increases a company's annual net sales by $900,000, and reduces its annual operating costs by $540,000. It requires an increase in net working capital initially of $170,000 (t=0). Additional working capital needed at the end of year 1 is $150,000, which will be recovered at the end of the life of the project. There are no depreciation expenses or salvage value in relation to this project. Compute the Net Present Value of this project given a tax rate of 30% and a cost of capital of 15%
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