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A project has an initial requirement of $350,000 for fixed assets and $30,000 for net working...

  1. A project has an initial requirement of $350,000 for fixed assets and $30,000 for net working capital. The fixed assets will be depreciated to a zero book value over the 3-year life of the project and have an estimated salvage value of $150,000. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $250,000 and the discount rate is 14 percent. What is the project's net present value if the tax rate is 20 percent?

    $354,727.22

    $370,174.82

    $301,653.73

    $337,637.10

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