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Compute the net present value of the project

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Question - A corporation is considering investing $915,000 in a project. The lift of the project would be 7 years. The project would require additional working capital of $40,000 which would be released for use elsewhere at the end of the project. The annual net cash inflows would be $190,000. The salvage value of the assets used in the project would be $50,000. The company uses a discount rate of 12%. (Ignore income taxes.) Compute the net present value of the project.

Reference no: EM131802860

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