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?© BrainMass Inc. brainmass.com March 4, 2021, 8:26 pm ad1c9bdddf
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.