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A company needs an increase in working capital of $25,000 in a project that will last...

A company needs an increase in working capital of $25,000 in a project that will last 8 years. The company's tax rate is 30% and its after-tax discount rate is 7%.

Click here to view Exhibit 13B-1 to determine the appropriate discount factor(s) using table.

The present value of the release of the working capital at the end of the project is closest to: (Round your final answer to the nearest whole number.)

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Present value of working capital recovered

 FV×(1÷(1+r)^n)
Interest rate p.a 7.00%
Number of years 8
Number of compounding p.a 1
Interest rate per period ( r) 7.00%
Number of periods (n) 8
Future value (FV) $           25,000
Present value of working capital recovered(25000*(1/(1+7%)^8) $           14,550
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