View the step-by-step solution to: Bruno's Lunch Counter is expanding and expects operating cash

Bruno's Lunch Counter is expanding and expects operating cash flows of $26,000 a
year for 4 years as a result. This expansion requires $39,000 in new fixed assets.
These assets will be worthless at the end of the project. In addition, the project
requires $3,000 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 16 percent?
A. $21,033.33
B. $29,416.08
C. $28,288.70
D. $18,477.29
E. $32,409.57

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