Bruno's Lunch Counter is expanding and expects operating cash flows of $30,100 a year for 6 years as a result. This expansion requires $95,400 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $7,400 of net working capital throughout the life of the project. What is the net present value of this expansion project at a required rate of return of 12 percent?
- $30,716
- $32,910
- $34,738
- $28,353
- $24,702