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The Following Data Pertain to an Investment in Equipment  Life of the Project  8years \begin{array} {| l | l |} \hline \text { Life of the Project } & \text { 8years } \\\hline\end{array}

Question 30

Multiple Choice

The following data pertain to an investment in equipment:
 Investment in the Project $10,000 Net Annual Cash Inflows $2,400 Working Capital Required $5,000 Salvage Value of the Equipment $1,000\begin{array}{|l|r|}\hline \text { Investment in the Project } & \$ 10,000 \\\hline \text { Net Annual Cash Inflows } & \$ 2,400 \\\hline \text { Working Capital Required } & \$ 5,000 \\\hline \text { Salvage Value of the Equipment } & \$ 1,000 \\\hline\end{array}
 Life of the Project  8years \begin{array} {| l | l |} \hline \text { Life of the Project } & \text { 8years } \\\hline\end{array}
At the completion of the project,the working capital will be released for use elsewhere.What is the net present value of the project,using a discount rate of 10%? (Ignore income taxes in this problem.) (Do not round your intermediate calculations and round the final answer to the nearest whole dollar.)


A) $603.
B) $126.
C) ($1,729) .
D) ($517) .

Correct Answer:

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