The working capital will be released for use elsewhere at

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Reference no: EM13484107 , Length: 10

The following data concern an investment project:

Investment in equipment

$10,000

Net annual cash inflows

$2,400

Working capital required

$5,000

Salvage value of the equipment

$1,000

Life of the project

8 years

Required rate of return

10%

The working capital will be released for use elsewhere at the conclusion of the project.

Required:

Compute the project's net present value.

Reference no: EM13484107

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