A project has an initial requirement of $206,204 for new equipment and $8,111 for net working...

A project has an initial requirement of $206,204 for new equipment and $8,111 for net working capital. The installation costs are expected to be $10,540. 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 $110,343. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $70,468 and the cost of capital is 11% What is the project's NPV if the tax rate is 37%? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Expert Solution

NPV	$44,903.51

Year	Initial cost	NWC	Salvage	Operating cost	Net Cash flow
0	($216,744.00)	($8,111.00)			($224,855.00)
1				70468	$70,468.00
2				70468	$70,468.00
3				70468	$70,468.00
4		8111.00	69516.09	70468	$148,095.09

jeff jeffy answered 3 weeks ago

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