Compute the net present value of the project

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Reference no: EM131695922

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: EM131695922

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