Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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A project will produce an operating cash flow of $38,400 a year for 4 years. The initial cash outlay for equipment will
be $57,300 and the after-tax salvage value of $8,415 will be received at the end of the project. The project initially
requires $1,2000 of net working capital that will be fully recovered at project's end. What is the net present value of
the project if the required rate of return is 16 percent?
O $53,300.41
O $49,896.87
$47,398.2
$48,368.19
O $54,260.42
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Transcribed Image Text:A project will produce an operating cash flow of $38,400 a year for 4 years. The initial cash outlay for equipment will be $57,300 and the after-tax salvage value of $8,415 will be received at the end of the project. The project initially requires $1,2000 of net working capital that will be fully recovered at project's end. What is the net present value of the project if the required rate of return is 16 percent? O $53,300.41 O $49,896.87 $47,398.2 $48,368.19 O $54,260.42
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