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NPV of this opportunity

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Your company undertakes a project that requires an initial investment in equipment of $467,000 and $68,000 in working capital and the company estimates that it will provide $121,000 in after tax cash inflows for seven years. The firm's cost of capital and hurdle rate is 8.6%. The estimated after tax salvage value is $98,000.
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Determine NPV?

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Solution Summary

The response provides steps to compute the NPV.

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Initial Investments= Investments in Fixed Assets + Working Capital
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