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A Company Needs an Increase in Working Capital of $30,000

Question 14

Multiple Choice

A company needs an increase in working capital of $30,000 in a project that will last 2 years. The company's tax rate is 30% and its discount rate is 14%. The present value of the release of the working capital at the end of the project is closest to:


A) $16,159
B) $9,000
C) $21,000
D) $23,084

Correct Answer:

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