Reference no: EM133067875

XYZ is considering a project that would last for 3 years and have a cost of capital of 23.40 percent. The relevant level of net working capital for the project is expected to be $1,631.50 immediately (at year 0); $4,630.00 in 1 year; $15,700.00 in 2 years; and $0.00 in 3 years. Relevant expected revenue, costs, depreciation, and cash flows from capital spending in years 0, 1, 2, and 3 are presented in the following table. The tax rate is 45.60 percent. What is the net present value of this project?. Year 0 Year 1 Year 2 Year 3 Revenue $ 0.00 $11,500.00 $10,800.00 $10,400.00 Costs $ 0.00 $3,970.00 $3,590.00 $4,900.00 Depreciation $ 0.00 $1,760.00 $2,060.00 $1,600.00 Cash flows from capital spending $4,720.00 $1,340.00 $1,990.00 $4,330.00 0 $4186.36 (plus or minus $10) 0 $6167.13 (plus or minus $10) 0 $3144.18 (plus or minus $10) 0 $9096.12 (plus or minus $10) 0 None of the above is within $10 of the correct answer