Basta Corporation has provided the following data concerning an investment project that it is considering: Initial investment$780,000 Working capital $94,000 Annual cash flow$268,000per yearSalvage value at the end of the project$26,000 See separate Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided.The working capital would be released for use elsewhere at the end of the project in 4 years. The company's discount rate is 8%. The net present value of the project is closest to:

A. $32,726
B. $126,726
C. $318,000
D. $101,816


Answer: D

Business

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