A $40,000 investment in working capital is expected to generate $7,200 additional yearly cash flow after tax. All
of the working capital will be recovered at the end of the project's four-year life. What will happen to the rate of
return of this investment project if inflation during the next four years is expected to be 10% annually?

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The Answer of A $40,000 investment in working capital is expected to generate $7,200 additional yearly cash flow after tax. All
of the working capital will be recovered at the end of the project's four-year life. What will happen to the rate of
return of this investment project if inflation during the next four years is expected to be 10% annually?

A $40,000 Investment in Working Capital Is Expected to Generate