The Double Play Deli is expanding and expects operating cash flows of $42,700 a year for four years as a result. This expansion requires $79,000 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $11,800 of net working capital throughout the life of the project. What is the net present value of this expansion project at a required rate of return of 11 percent? O $68,288 O $77,033 O $51,075 O$49,447 $46,345

The Double Play Deli is expanding and expects operating cash flows of $42,700 a year for four years as a result. This expansion requires $79,000 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $11,800 of net working capital throughout the life of the project. What is the net present value of this expansion project at a required rate of return of 11 percent? O $68,288 O $77,033 O $51,075 O$49,447 $46,345

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

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