You Are Working on a Bid for a Contract

Multiple Choice

You are working on a bid for a contract.Thus far,you have determined that you will need $156,000 for fixed assets and another $32,000 for net working capital at Time 0.You have also determined that you can recover $68,400 aftertax for the combined fixed assets and net working capital at the end of the 4-year project.What operating cash flow will be required each year for the project to return 16 percent in nominal terms?

A) $46,666.67
B) $48,929.74
C) $55,200.16
D) $53,686.06
E) $50,725.50