Question

Wellpoint Company is considering an investment project that will produce an operating cash flow of $415,200...

Wellpoint Company is considering an investment project that will produce an operating cash flow of $415,200 a year for five years. The initial cash outlay for equipment will be $1,027,000. An aftertax salvage value of $82,160 for the equipment will be received at the end of the project. The project requires $154,050 of net working capital that will be fully recovered. What is the net present value of the project if the required rate of return is 14 percent?

$388,174.80

$367,045.29

$353,609.37

$376,320.20

$345,631.90

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