The following data concern an investment project:
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Investment in equipment
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$10,000
|
|
Net annual cash inflows
|
$2,400
|
|
Working capital required
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$5,000
|
|
Salvage value of the equipment
|
$1,000
|
|
Life of the project
|
8 years
|
|
Required rate of return
|
10%
|
The working capital will be released for use elsewhere at the conclusion of the project.
Required:
Compute the project's net present value.