Business, 26.08.2019 17:20 avision42

Sol’s sporting goods is expanding and, as a result, expects additional operating cash flows of $26,000 a year for 4 years. this expansion requires $39,000 in new fixed assets. these assets will be worthless at the end of the project. in addition, the project requires an additional $3,000 of net working capital throughout the life of the project; sol expects to recover this amount at the end of the project. what is the net present value of this expansion project at a 16-percent required rate of return?

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Sol’s sporting goods is expanding and, as a result, expects additional operating cash flows of $26,0...