Find what is the net present value of the project

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Reference no: EM132765601

The following data pertain to an investment proposal:

Investment in the Project (equipment) $14,000

Net Annual Cash Inflows Promised $2,800

Working Capital Required $5,000

Salvage Value of the Equipment $1,000

Life of the Project 10 years

Problem 1: The working capital would be released for use elsewhere when the project is completed. What is the net present value of the project, using a discount rate of 8%? (Ignore income taxes in this problem.)

A. ($251).

B. $251.

C. $2,566.

D. $5.251.

Reference no: EM132765601

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