Question $12$

A project is expected to create operating cash flows of $$22,500$ a year for three years. The

initial cost of the fixed assets is $$40,000.$ These assets will be worthless at the end of the

project. An additional $$3,000$ of net working capital will be required throughout the life of

the project. What is the project's net present value if the required rate of return is $8\%?$

$$17,366\mathrm{.}18$

$$18,954\mathrm{.}17$

$$18,306\mathrm{.}09$

$$19,208\mathrm{.}11$

$$24,954\mathrm{.}17$