A project will produce an operating cash flow of $9,000 a year for 8 years. The initialfixed asset investment in the project will be $65,000. The net aftertax salvage valueis estimated at $55,250 and will be received during the last year of the project's life.What is the net present value of the project if the required rate of return is 11percent?$5,077.96$5,289.54$4,601.90$4,866.38$4,760.59

Step 1: The calculation of the NPV AB1Initial investment $65,000.00 2Operating Cash Flow $…

Answered: A project will produce an operating…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 3CMA

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