Question: XYZ is considering a project that would last for 3 years and have a cost of capital of 21.20 percent. The relevant level of net

 XYZ is considering a project that would last for 3 years

XYZ is considering a project that would last for 3 years and have a cost of capital of 21.20 percent. The relevant level of net working capital for the project is expected to be $1,961.40 immediately (at year 0); $4,870.00 in 1 year; $15,700.00 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 49.30 percent. What is the net present value of this project?. Year 0 $0.00 Year 1 Year 2 Year 3 $12,900.00 $10,000.00 $10,500.00 Revenue Costs $ 0.00 $3,580.00 $3,710.00 $2,300.00 Depreciation $ 0.00 $1,550.00 $1,530.00 $1,900.00 Cash flows from capital spending $-5,940.00 $1,560.00 $ 580.00 $4,000.00 O $7159.50 (plus or minus $10) $1760.56 (plus or minus $10). $10979.08 (plus or minus $10) $5148.20 (plus or minus $10) None of the above is within $10 of the correct

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