A project is expected to create unlevered net income of $26,500 a year for four years from year 1 to year 4. The initial
Posted: Tue Nov 16, 2021 8:27 am
A project is expected to create unlevered net income of $26,500 a year for four years from year 1 to year 4. The initial cost of the fixed assets at year 0 is $62,000, and the firm uses a four-year straight-line depreciation method. These assets will be worthless at the end of the project. The project also requires an $3,000 net working capital that needs to be invested at year o and returned at year 4. What is the project's net present value if the required rate of return is 12 percent? A. $ 19208.11 B.$ 54028.18 C.$ 17396.31 0.$ 64475.23