A project under consideration by Hilton Corporation would require a working capital investment of $200,000.The working capital would be liquidated at the end of the project's 10-year life.If Hilton Corporation has an after-tax cost of capital of 10 percent and a marginal tax rate of 30 percent,what is the present value of the working capital cash flow expected to be received in year 10? Present value tables or a financial calculator are required.
A) $36,868
B) $77,100
C) $53,970
D) $23,130
Correct Answer:
Verified
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