Vinup Corporation Has Provided the Following Data Concerning an Investment

question 39

Multiple Choice

Vinup Corporation has provided the following data concerning an investment project that it is considering: The working capital would be released for use elsewhere at the end of the project in 4 years. The company's discount rate is 13%. The net present value of the project is closest to:

• A)$8,486
• B)$36,737
• C)$89,000
• D)($36,263)

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Definitions:

Shareholders' Equity

The residual interest in the assets of a company after deducting all its liabilities.

Net Working Capital

The difference between a company's current assets and its current liabilities, indicating the short-term liquidity of a company.

Net Fixed Assets

The value of a company's fixed assets minus any accumulated depreciation or impairment charges, reflecting the actual value of assets in use.

Intangible Fixed Assets

Non-physical assets owned by a company that are used in operations, such as intellectual property, goodwill, and licenses.