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

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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