Salvage value of equipment 2000 recovery of working capital


Question - Landon Co. Is considering the following investment proposal: Initial investment: Depreciatiable assets (straight line) $26,000 Working capital $4,000 Operations per year (for 4 yrs) Cash receipts $20,000 Cash expenditures &11,000 Disinvestment: Salvage value of equipment $2,000 Recovery of working capital 4,000 Discount rate 10%. What is the net present value for the investment?

A. $2,628

B. $13,550

C. $28,530

D. $32,628

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Accounting Basics: Salvage value of equipment 2000 recovery of working capital
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