Project will produce an operating cash flow

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A project will produce an operating cash flow of $8,000 a year for three years. The initial cash outlay for equipment will be $15,000. The net after-tax salvage value of $3,500 will be received at the end of the project. The project requires $1,000 of net working capital up front that will be fully recovered at the end of the project life. What is the net present value of the project if the required rate of return is 10 percent?

Reference no: EM131343268

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