Hello- I'm working on the following question:

Here is my work for finding NPV, I guess I'm unsure where I went wrong:
Useful Life 8 years Cost of capital is 6%

Equipment (308,000) * Now*1.000= (308000)
Working Capital (50,000)*Now*1.000=(50000)
Annual $ inflow 55,000*6.210-=341550
Salvage value 60,000*.627= 37620
Cash repair at end of 5 years (70,000*.747)=(52290)

Answer: (31120) --but this is not the correct answere. Where did I go wrong?

If the equipment requires tying up working capital at the outset, to the tune of 50K, then it's usually assumed there'll be a release of this working capital investment at the end of the equipment's life.

Thus you need one more cash flow--an inflow of 50K at the terminal point (end of year 8). Give that a spin and see how you do.