(Appendix 8C)Alopecia Hair Tonic Corporation is considering an investment project that is expected to generate net cash inflows of $65, 000 per year for 4 years.The only initial investment funds required will be a $150, 000 increase in working capital.This will be released at the end of the 4 years.Alopecia's after-tax cost of capital is 12% and its tax rate is 30%.The net present value of this investment project is closest to:
A)$4, 622
B)$59, 222
C)$83, 584
D)$99, 964

Question

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The Answer of (Appendix 8C)Alopecia Hair Tonic Corporation is considering an investment project that is expected to generate net cash inflows of $65, 000 per year for 4 years.The only initial investment funds required will be a $150, 000 increase in working capital.This will be released at the end of the 4 years.Alopecia's after-tax cost of capital is 12% and its tax rate is 30%.The net present value of this investment project is closest to:
A)$4, 622
B)$59, 222
C)$83, 584
D)$99, 964

(Appendix 8C)Alopecia Hair Tonic Corporation Is Considering an Investment Project