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.
Required
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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