A 5-yr project has an initial requirement of $122569 for new equipment and $8905 for net...

A 5-yr project has an initial requirement of $122569 for new equipment and $8905 for net working capital. The installation cost is $11745. The fixed assets will be depreciated to a zero book value over 5 years and have an estimated salvage value of $25201. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $65755. The cost of capital is 10% and the tax rate is 33%. What is the net present value of the project?

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jeff jeffy answered 5 months ago

A 5-yr project has an initial requirement of $114,625 for new equipment and $9,960 for net...

A 5-yr project has an initial requirement of $114,625 for new equipment and $9,960 for net working capital. The fixed assets will be depreciated to a zero book value over 5 years and have an estimated salvage value of $24,773. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $58,012. The cost of capital is 9% and the tax rate is 32%. What is the net present value...

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A 5-yr project has an initial requirement of $145,226 for new equipment and $9,294 for net working capital. The fixed assets will be depreciated to a zero book value over 5 years and have an estimated salvage value of $27,669. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $51,222. The cost of capital is 9% and the tax rate is 27%. What is the net present value...

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A project has an initial requirement of $176,772 for new equipment and $11,134 for net working capital. The installation costs are expected to be $14,442. The fixed assets will be depreciated to a zero book value over the 4-year life of the project and have an estimated salvage value of $123,456. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $88,581 and the cost of capital is 10%...

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A project has an initial requirement of $219,312 for new equipment and $14,180 for net working capital. The installation costs are expected to be $13,506. The fixed assets will be depreciated to a zero book value over the 4-year life of the project and have an estimated salvage value of $94,642. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $51,197 and the cost of capital is 5%...

A project has an initial requirement of $190,151 for new equipment and $11,289 for net working...

A project has an initial requirement of $190,151 for new equipment and $11,289 for net working capital. The installation costs are expected to be $15,824. The fixed assets will be depreciated to a zero book value over the 4-year life of the project and have an estimated salvage value of $77,787. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $78,979 and the cost of capital is 14%...

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