In: Finance
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% What is the project's NPV if the tax rate is 28%?