A Project Will Produce an Operating Cash Flow of $7,300

question 74

Multiple Choice

A project will produce an operating cash flow of $7,300 a year for three years.The initial cash outlay for equipment will be $11,600.The net aftertax salvage value of $3,500 will be received at the end of the project.The project requires $800 of net working capital that will be fully recovered.What is the net present value of the project if the required rate of return is 11 percent?

• A)$8,583.24
• B)$9,896.87
• C)$8,368.19
• D)$9,353.41
• E)$7,398.29

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