+1 (218) 451-4151
glass
pen
clip
papers
heaphones

A firm is evaluating a project which will cost $7,586 today andprovide additional cash flows in yea

A firm is evaluating a project which will cost $7,586 today andprovide additional cash flows in yea

A firm is evaluating a project which will cost $7,586 today andprovide additional cash flows in years 1, 2, 3 and 4 of $5,568,$2,586, $2,586, and $7,560, respectively. The project will alsoemploy $5,000 in working capital during the life of the project(allocated at the beginning and paid back in the last period). Itssalvage value at the end of year 4 will be zero and the companyuses a straight line depreciation schedule. The firm uses adiscount rate of 8%? What is the NPVSelect one:a. $5,986b. $7,396c. $12,396d. $13,182e. $8,721