A Company Needs an Increase in Working Capital of $10,000

question 7

Multiple Choice

A company needs an increase in working capital of $10,000 in a project that will last 4 years.The company's tax rate is 30% and its discount rate is 8%.The present value of the release of the working capital at the end of the project is closest to:

• A)$7,350
• B)$3,000
• C)$7,000
• D)$5,145

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