Solution-The working capital will be released for use

The working capital will be released for use elsewhere at

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Reference no: EM13567265

The following data concern an investment project:

Investment in equipment	$10,000
Net annual cash inflows	$2,400
Working capital required	$5,000
Salvage value of the equipment	$1,000
Life of the project	8 years
Required rate of return	10%

The working capital will be released for use elsewhere at the conclusion of the project.

Required:

Compute the project"s net present value.

Reference no: EM13567265

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The working capital will be released for use elsewhere at

Reference no: EM13567265

Reference no: EM13567265

Questions Cloud

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Finance Basics Questions & Answers

Financial reporting and analysis

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Effect of financial leverage

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