Question: QUESTION 1 A project is expected to create operating cash flows (excluding NWC) of $26.500 a year for four years from year 1 to year
QUESTION 1 A project is expected to create operating cash flows (excluding NWC) of $26.500 a year for four years from year 1 to year 4. The initial cost of the fixed assets at year is $62,000. These assets will be worthless at the end of the project. The project also requires an $2,000 net working capital that needs to be invested at year 0 and returned at year 4. What is the project's net present value if the required rate of return is 12 percent? 19208.11 14028.18 15306.09 16760.79
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