A project has an initial requirement of $350,000 for fixed
assets and $30,000 for net working...
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Finance
A project has an initial requirement of $350,000 for fixedassets and $30,000 for net working capital. The fixed assets willbe depreciated to a zero book value over the 3-year life of theproject and have an estimated salvage value of $150,000. All of thenet working capital will be recouped at the end of the project. Theannual operating cash flow is $250,000 and the discount rate is 14percent. What is the project's net present value if the tax rate is20 percent?
$354,727.22
$370,174.82
$301,653.73
$337,637.10
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