Facio Corporation has provided the following data concerning an investment project that it is considering: Initial investment$770,000 Working capital$65,000 Annual cash flow $274,000per yearSalvage value at the end of the project$20,000?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 3 years. The company's discount rate is 8%. The net present value of the project is closest to:
A. $(61,412)
B. $(113,022)
C. $52,000
D. $3,588
Answer: A
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