Question - Byerly Corporation has provided the following data concerning an investment project that it is considering
Initial investment $670,000
Working capital $61,000
Annual cash flow $227,000 per year
Salvage value at the end of the project $20,000
Expected life of the project 3yearsDiscount rate 10%
The working capital would be released for use elsewhere at the end of the project. The net present value of the project is closest to:
Multiple Choice
- $(151,658)
- $(105,847)
- $11,000
- $(44,847)