The following data concern an investment project:
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Investment in equipment
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$10,000
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Net annual cash inflows
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$2,400
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Working capital required
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$5,000
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Salvage value of the equipment
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$1,000
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Life of the project
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8 years
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|
Required rate of return
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10%
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The working capital will be released for use elsewhere at the conclusion of the project.
Required:
Compute the project"s net present value.