Bruno’s Lunch Counter is expanding and expects operating cas…
Bruno’s Lunch Counter is expanding and expects operating cash flows of $25,600 a year for 4 years as a result. This expansion requires $69,000 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $5,800 of net working capital throughout the life of the project, which will be fully recovered at the end. What is the net present value of this expansion project at a required rate of return of 13 percent?