A five-year project requires an additional commitment of $100,000 in net working capital. What is the present value opportunity cost associated with this investment?

Question

Answer

$100,000

Answer

The value of $100,000, netted against the discounted present value of the $100,000 of working capital returned at the end of the project

Answer

The present value of $100,000, discounted at the firm's cost of capital

Answer

No opportunity cost is involved

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A five-year project requires an additional commitment of $100,000 in net working...

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