Grossett Corporation has provided the following data concerning a proposed investment project:
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Initial investment
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$160,000
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Life of the project
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6 years
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Working capital required
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$35,000
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Annual net cash inflows
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$56,000
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Salvage value
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$24,000
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The company uses a discount rate of 10%. The working capital would be released at the end of the project.
Required:
Compute the net present value of the project