Please help me with this accounting problem (just one question); Thank you! Exhi

Question

Please help me with this accounting problem (just one question); Thank you!

Exhibit 13-B1:

3. A company needs an Increase in working capital of $13,000 In a project that will last 8 years. The company's tax rate is 34% and its discount rate is 7%. Click here to view Exhibit 13B-1 to determine the appropriate discount factor(s) using table. The present value of the release of the working capital at the end of the project is closest to: (Round discount factor(s) to 3 decimal places and your final answer to the nearest whole number.)

Explanation / Answer

Present Value of Working capital released = Working Capital Released *PVIF(7%,8)

Present Value of Working capital released = 13000*0.582

Present Value of Working capital released = $ 7566

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