Coyne Corporation is evaluating a capital investment opportunity. This project would require an initial investment of $ 39 comma 000 to purchase equipment. The equipment will have a residual value at the end of its life of $ 2 comma 000. The useful life of the equipment is 6 years. The new project is expected to generate additional net cash inflows of $ 20 comma 000 per year for each of the six years. Coyne's required rate of return is 10 %. The net present value of this project is closest to:
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Home » Business » Coyne Corporation is evaluating a capital investment opportunity. This project would require an initial investment of $ 39 comma 000 to purchase equipment. The equipment will have a residual value at the end of its life of $ 2 comma 000.