Net present value of this investment project

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Reference no: EM13789088

Alopecia Hair Tonic Corporation is considering an investment project that is expected to generate net cash inflows of $65,000 per year for 4 years. The only initial investment funds required will be a $150,000 increase in working capital. This will be released at the end of the 4 years. Alopecia's after-tax cost of capital is 12% and its tax rate is 30%. The net present value of this investment project is closest to:

$4,622

$59,222

$83,584

$99,964

Reference no: EM13789088

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