Question $1$

A company is considering a project with the following

characteristics:

Initial investment: $$7,500$

Working capital required: $$1,000$

Annual net cash flows for $4$ years: $$5,000$ 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 above for any present value

calculations. Don't round intermediate calculations.

Round your final answer to the nearest dollar.$)$ For reference, abbreviated versions of the present value tables from Chapter $12$ are below. Use these

tables for any present value calculations in the following questions.

Present Value of an ordinary annuity of $$1$ received at the end of the period for $n$ periods.