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A company needs an increase in working capital of $20,000 in a project that will last 4 years. The company's tax rate is 30% and its after-tax discount rate is 10%. The present value of the release of the working capital at the end of the project is closest to:
Fixed
Pertains to expenses that remain constant for a given period regardless of the level of production or business activity.
Cost of Goods Sold
The direct costs attributable to the production of the goods sold by a company, including materials and labor.
Estimated
An approximation or informed guess of a value, quantity, or outcome based on available data.
Budgeted Accounts Receivable
Predicts the amount of money owed to a business by its customers for sales made on credit during a specific period.
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