Penn Corp. is expanding and expects operating cash flows of $34,000 a year for 3 years as a result. This expansion requires $28,000 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $18,000 of net working capital which will be recouped when the project ends. What is the net present value of this expansion project at a required rate of return of 8 percent? O$30,321.43 O $42,920.24 O $48,720.39 O $55,910.28
Penn Corp. is expanding and expects operating cash flows of $34,000 a year for 3 years as a result. This expansion requires $28,000 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $18,000 of net working capital which will be recouped when the project ends. What is the net present value of this expansion project at a required rate of return of 8 percent? O$30,321.43 O $42,920.24 O $48,720.39 O $55,910.28
Chapter6: Exponential And Logarithmic Functions
Section: Chapter Questions
Problem 5RE: A retirement account is opened with an initialdeposit of 8,500 and earns 8.12 interest compounded...
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