(Ignore income taxes in this problem.) Korber Corporation is considering investing $820,000 in a project. The life of the project would be 8 years. The project would require additional working capital of $18,000, which would be released for use elsewhere at the end of the project. The annual net cash inflows would be $246,000. The salvage value of the assets used in the project would be $41,000. The company uses a discount rate of 19%.
Required:
Compute the net present value of the project.

Question

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The Answer of (Ignore income taxes in this problem.) Korber Corporation is considering investing $820,000 in a project. The life of the project would be 8 years. The project would require additional working capital of $18,000, which would be released for use elsewhere at the end of the project. The annual net cash inflows would be $246,000. The salvage value of the assets used in the project would be $41,000. The company uses a discount rate of 19%.
Required:
Compute the net present value of the project.

(Ignore Income Taxes in This Problem