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Denny Associates has been offered a four-year contract to supply the computing requirements for a...

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Accounting

Denny Associates has been offered a four-year contract to supply the computing requirements for a local bank. Cash flow information:

The working capital would be released at the end of the contract. Denny Associates requires a 14% return.

What is the net present value of the contract with the local bank?

A

$150,000

B

$28,230

C

$92,340

D

$132,916

Answer & Explanation Solved by verified expert
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