A Project Is Expected to Create Operating Cash Flows of $26,500

A project is expected to create operating cash flows of $26,500 a year for four years.The fixed assets required for the project cost $62,000 and will be worthless at the end of the project.An additional $3,000 of net working capital will be required throughout the life of the project.What is the project's net present value if the required rate of return is 12 percent?

A) $19,208.11
B) $14,028.18
C) $15,306.09
D) $17,396.31
E) $21,954.17

Correct Answer:

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