A project will produce an operating cash flow of $38,400 a year for 4 years. The initial cash outlay for equipment will be $57,300 and the after-tax salvage value of $8,415 will be received at the end of the project. The project initially requires $1,2000 of net working capital that will be fully recovered at project's end. What is the net present value of the project if the required rate of return is 16 percent? O $53,300.41 O $49,896.87 $47,398.2 $48,368.19 O $54,260.42
A project will produce an operating cash flow of $38,400 a year for 4 years. The initial cash outlay for equipment will be $57,300 and the after-tax salvage value of $8,415 will be received at the end of the project. The project initially requires $1,2000 of net working capital that will be fully recovered at project's end. What is the net present value of the project if the required rate of return is 16 percent? O $53,300.41 O $49,896.87 $47,398.2 $48,368.19 O $54,260.42
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
16
Transcribed Image Text:A project will produce an operating cash flow of $38,400 a year for 4 years. The initial cash outlay for equipment will
be $57,300 and the after-tax salvage value of $8,415 will be received at the end of the project. The project initially
requires $1,2000 of net working capital that will be fully recovered at project's end. What is the net present value of
the project if the required rate of return is 16 percent?
O $53,300.41
O $49,896.87
$47,398.2
$48,368.19
O $54,260.42
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education