Farah Corporation has provided the following data concerning a proposed investment project:
Initial investment: $320,000
Life of the project 5 years
working capital required $14,000
Annual net cash inflows: $88,000
Salvage value: $44,000
The company uses a discount rate of 11%. The working capital would be released at the end of the project.
Required:
Compute the net present value of the project.