A project has an initial requirement of $176,772 for new equipment and $11,134 for net working...

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% What is the project's NPV if the tax rate is 27%? Enter your answer rounded off to two decimal points.

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jeff jeffy answered 2 years ago

A project has an initial requirement of $191013 for new equipment and $13286 for net working...

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A 5-yr project has an initial requirement of $142495 for new equipment and $8859 for net working capital. The installation cost is $14729. The fixed assets will be depreciated to a zero book value over 5 years and have an estimated salvage value of $27974. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $56124. The cost of capital is 10% and the tax rate is 28%. What...

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