What is the project net present value

Reference no: EM13281188

A project is expected to create operating cash flows of $27,500 a year for three years. The initial cost of the fixed assets is $57,000. These assets will be worthless at the end of the project. An additional $2,500 of net working capital will be required throughout the life of the project. What is the project's net present value if the required rate of return is 8 percent?

1. $ 13,354.75
2. $ 10,854.75
3. $ 11,370.17
4. $ 3,375.00
5. $ 15,584.75

Reference no: EM13281188

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