A Company Needs an Increase in Working Capital of $20,000

Multiple Choice

A company needs an increase in working capital of $20,000 in a project that will last 4 years. The company's tax rate is 30% and its after-tax discount rate is 10%. The present value of the release of the working capital at the end of the project is closest to:

A) $6,000
B) $13,660
C) $9,562
D) $14,000