What is the net present value of project

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1. Windflower Farm is considering an investment in a new project, which would require $5500 worth of capital expenditures and an increase of $4500 in net working capital that will be recovered at the end of the project. Each year, starting at the end of the first year, the operating cash flows of the project will be $1700 for 5 years. The project is risky, so its WACC is 13%. What is the net present value of the project?

$-1,396.71

$1,667.24

$-1,578.29

None of these

$-4,020.71

2. If the stock market declines,

1. the owner of a stock index call option profits

2. the owner of a stock index call option loses

3. the writer of a stock index call option profits

4. the writer of a stock index call option loses

a. 1 and 3            b. 1 and 4              c. 2 and 3             d. 2 and 4

Reference no: EM131937284

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