Problem:
A project is expected to create operating cash flows of $35,589 a year for three years. The initial cost of the fixed assets is $46,960. These assets will be worthless at the end of the project. An additional $9,251 of net working capital will be required throughout the life of the project, and will be recouped at the end.
Required:
Question: What is the project's net present value if the required rate of return is 11.5 percent?
Note: Explain all steps comprehensively.