Grossett Corporation has provided the following data concerning a proposed investment project:
|
Initial investment |
$160,000 |
|
Life of the project |
6 years |
|
Working capital required |
$35,000 |
|
Annual net cash inflows |
$56,000 |
|
Salvage value |
$24,000 |
The company uses a discount rate of 10%. The working capital would be released at the end of the project.
Required:
Compute the net present value of the project.