Investments net present value

Assignment Help Accounting Basics

Reference no: EM13127810

Parks Company is considering an investment proposal in which a working capital investment of $10,000 would be required. The investment would provide cash inflows of $2,000 per year for six years. The working capital would be released for use elsewhere when the project is completed. If the company's discount rate is 10%, the investment's net present value is:

A. $1,290

B. $(1,290)

C. $2,000

D. $4,350

Reference no: EM13127810

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