Project''s net present value if the required rate of return


Problem:

A project is expected to create operating cash flows of $31,000 a year for three years. The initial cost of the fixed assets is $64,000. These assets will be worthless at the end of the project. An additional $2,500 of net working capital will be required throughout the life of the project.

Required:

Question: What is the project's net present value if the required rate of return is 15 percent?

  • $4,279.98
  • $3,423.77
  • $8,423.77
  • $2,033.33
  • $5,923.77

Note: Please show how to work it out.

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Finance Basics: Project''s net present value if the required rate of return
Reference No:- TGS0893322

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