Calculate the net present value of the project

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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)

Reference no: EM131730188

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