Dover company is considering an investment project in which a working capital investment of $30,000 would be required. The investment would provide cash inflows of $10,000 per year for 6 years. If the company's discount rate is 18% and if the working capital is released at the end of the project, then the project's net present value is: a)$4,980 b)($4,980) c)$16,080 d)($12,360)
Dover company is considering an investment project in which a working capital investment of $30,000 would be required. The investment would provide cash inflows of $10,000 per year for 6 years. If the company's discount rate is 18% and if the working capital is released at the end of the project, then the project's net present value is: a)$4,980 b)($4,980) c)$16,080 d)($12,360)
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 19EA: Redbird Company is considering a project with an initial investment of $265,000 in new equipment...
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Dover company is considering an investment project in which a working capital investment of $30,000 would be required. The investment would provide cash inflows of $10,000 per year for 6 years. If the company's discount rate is 18% and if the working capital is released at the end of the project, then the project's net present value is:
a)$4,980
b)($4,980)
c)$16,080
d)($12,360)
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