A project is expected to create operating cash flows of $36,000 a year for four...
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Finance
A project is expected to create operating cash flows of $36,000 a year for four years. The initial cost of the fixed assets is $100,000. These assets will be worthless at the end of the project. An additional $5,000 of net working capital will be required at time 0 and this will be released at the end of the project. What is the project's net present value if the required rate of return is 10 percent?
$12,530.22
$1,879.25
$6,879.25
$3,585.60
$8,585.60
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