Compute the net present value of the project

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Reference no: EM131621513

Farah Corporation has provided the following data concerning a proposed investment project:

Initial investment .......................... $320,000

Life of the project ........................................ 5 years

Working capital required ......................... $14,000

Annual net cash inflows .......................... $88,000

Salvage value ................................ $44,000

The company uses a discount rate of 11%. The working capital would be released at the end of the project.

Required:

Compute the net present value of the project.

Reference no: EM131621513

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