The following data pertain to an investment proposal: $\begin{array} { l r }
\text { Investment in the Project (equipment) } & \$ 14,000 \
\text { Net Annual Cash Inflows Promised } & \$ 2,800 \
\text { Working Capital Required } & \$ 5,000 \
\text { Salvage Value of the Equipment } & \$ 1,000 \
\text { Life of the Project } & 10 \text { years }
\end{array}$ The working capital would be released for use elsewhere when the project is completed.What is the net present value of the project,using a discount rate of 8%? (Ignore income taxes in this problem.)

Question

The following data pertain to an investment proposal: $\begin{array} { l r } 
\text { Investment in the Project (equipment) } & \$ 14,000 \
\text { Net Annual Cash Inflows Promised } & \$ 2,800 \
\text { Working Capital Required } & \$ 5,000 \
\text { Salvage Value of the Equipment } & \$ 1,000 \
\text { Life of the Project } & 10 \text { years }
\end{array}$ The working capital would be released for use elsewhere when the project is completed.What is the net present value of the project,using a discount rate of 8%? (Ignore income taxes in this problem.)

Quizplus · Accepted Answer

The Answer of The following data pertain to an investment proposal: $\begin{array} { l r } 
\text { Investment in the Project (equipment) } & \$ 14,000 \
\text { Net Annual Cash Inflows Promised } & \$ 2,800 \
\text { Working Capital Required } & \$ 5,000 \
\text { Salvage Value of the Equipment } & \$ 1,000 \
\text { Life of the Project } & 10 \text { years }
\end{array}$ The working capital would be released for use elsewhere when the project is completed.What is the net present value of the project,using a discount rate of 8%? (Ignore income taxes in this problem.)

The Following Data Pertain to an Investment Proposal The Working Capital Would Be Released for Use Elsewhere When