Question: QUESTION 5 XYZ is considering a project that would last for 3 years and have a cost of capital of 22.70 percent. The relevant

QUESTION 5 XYZ is considering a project that would last for 3

QUESTION 5 XYZ is considering a project that would last for 3 years and have a cost of capital of 22.70 percent. The relevant level of net working capital for the project is expected to be $2,003.00 immediately (at year 0); $4,900.00 in 1 year; $15,900.00 in 2 years; and $0.00 in 3 years. Relevant expected revenue, costs, depreciation, and cash flows from capital spending in years 0, 1, 2, and 3 are presented in the following table. The tax rate is 46.40 percent. What is the net present value of this project?. Revenue Costs Depreciation Year 0 $ 0.00 $ 0.00 Year 1 Year 2 Year 3 $12,500.00 $14,000.00 $12,200.00 $3,760.00 $3,580.00 $4,200.00 $ 0.00 $1,680.00 $1,950.00 $2,700.00 Cash flows from capital spending $-5,950.00 $ 390.00 $170.00 $3,040.00 $10953.06 (plus or minus $10) $700.61 (plus or minus $10) $8700.21 (plus or minus $10) $4826.63 (plus or minus $10) None of the above is within $10 of the correct answer

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