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The Following Data Pertain to an Investment Proposal  Life of the Project  10years \begin{array} { | l | l |} \hline \text { Life of the Project } & \text { 10years } \\\hline\end{array}

Question 33

Multiple Choice

The following data pertain to an investment proposal:
 Investment in the Project (equipment)  $14,000 Net Annual Cash Inflows Promised $2,800 Working Capital Required $5,000 Salvage Value of the Equipment $1,000\begin{array}{|l|r|}\hline \text { Investment in the Project (equipment) } & \$ 14,000 \\\hline \text { Net Annual Cash Inflows Promised } & \$ 2,800 \\\hline \text { Working Capital Required } & \$ 5,000 \\\hline \text { Salvage Value of the Equipment } & \$ 1,000 \\\hline\end{array}
 Life of the Project  10years \begin{array} { | l | l |} \hline \text { Life of the Project } & \text { 10years } \\\hline\end{array}
The working capital would be released for use elsewhere when the project is completed.What is the net present value of the project,using a discount rate of 8%? (Ignore income taxes in this problem.) (Do not round your intermediate calculations and round the final answer to the nearest whole dollar.)


A) ($251) .
B) $251.
C) $2,567.
D) $5,251.

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