Parks corporation is considering an investment proposal in which a working capital investment of $10,000 would be required. the investment would provide cash inflows of $2,000 per year for six years. the working capital would be released for use elsewhere when the project is completed. if the company's discount rate is 10%, the investment's net present value is closest to (ignore income taxes.):

Net present Value 4,355.26

It is positive so it will yield a profit for Parks Corporation

Explanation:

NPV = present value of cash flow - investment

Investment 10,000

cash flow 2,000 pwer year for 6 year

the cash flow are the same during the life of the project so we consider the present value of an annuity:

C2000

time6

rate0.1

PV$8,710.52

Next we have to conside the erase of the working capital

which is the present value of a lump sum of 10,000

Maturity10,000

time6

rate0.1

PV  5,644.7393

Next step we calculate the present value:

8,710.52 +5,644.74 - 10,000 = 4,355.26

these are the four factors that influence enterpreneurship development

1. economic development

2. culture

3.technological development

4. education