A project requires an increase in inventories, accounts payable, and accounts receivable of $105,000, $70,000, and $80,000, respectively. If opportunity cost of capital is 4% and the project has a life of 9 years, and the working capital investments will be recovered at the end of the life of the project, what is the effect on the NPV of the project? Enter your answer rounded to two decimal places. Enter your response below. Number

A project requires an increase in inventories, accounts payable, and accounts receivable of $105,000, $70,000, and $80,000, respectively. If opportunity cost of capital is 4% and the project has a life of 9 years, and the working capital investments will be recovered at the end of the life of the project, what is the effect on the NPV of the project? Enter your answer rounded to two decimal places. Enter your response below. Number

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Description: A project requires an increase in inventories, accounts payable, and accounts receivable of $105,000, $70,000, and $80,000,respectively. If opportunity cost of capital is 4% and the project has a life of 9 years, and the working capital investments

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 1P: A project has an initial cost of 40,000, expected net cash inflows of 9,000 per year for 7 years,...

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A project requires an increase in inventories, accounts payable, and accounts receivable of $125,000, $70,000, and $65,000, respectively. If opportunity cost of capital is 1% and the project has a life of 19 years, and the working capital investments will be recovered at the end of the life of the project, what is the effect on the NPV of the project? Enter your answer rounded to two decimal places. Enter your response below. Number
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