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    A Project's Net Present Value Based on Require Rate of Return

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    A project is expected to create operating cash flows of $22,500 a year for three years. The initial cost of the fixed assets is $50,000. These assets will be worthless at the end of the project. An additional $3,000 of net working capital will be required throughout the life of the project. What is the project's net present value if the required rate of return is 10 percent?

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    https://brainmass.com/business/project-management/a-project-is-expected-to-create-operating-cash-flows-of-22-500-a-year-for-three-years-168348

    Solution Summary

    This solution calculates a project's net present value when it is expected to operate cash flows of $22,500 per year for three years.

    $2.49

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