Released for use elsewhere at the end of the project

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Reference no: EM132054490

Bahamas Company is considering investing $790,000 in a project. The life of the project would be 6 years. The project would require additional working capital of $29,000, which would be released for use elsewhere at the end of the project. The annual net cash inflows would be $168,000. The salvage value of the assets used in the project would be $39,000. The company uses a discount rate of 13%. (Ignore income taxes.)

Net present value

Reference no: EM132054490

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