A project has an initial requirement of $230,294 for new equipment and $10,145 for net working...

A project has an initial requirement of $230,294 for new equipment and $10,145 for net working capital. The installation costs to get the new equipment in working condition are 5,997. The fixed assets will be depreciated to a zero book value over the 5-year life of the project and have an estimated salvage value of $116,602. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $118,381 and the cost of capital is 14% What is the project's NPV if the tax rate is 37%?

Expert Solution

ekkarill92 answered 2 years ago

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

A project has an initial requirement of $191013 for new equipment and $13286 for net working capital. The installation costs to get the new equipment in working condition are 3728. The fixed assets will be depreciated to a zero book value over the 5-year life of the project and have an estimated salvage value of $72103. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $94903 and the...

A project has an initial requirement of $205,268 for new equipment and $14,020 for net working...

A project has an initial requirement of $205,268 for new equipment and $14,020 for net working capital. The installation costs to get the new equipment in working condition are 14,481. The fixed assets will be depreciated to a zero book value over the 5-year life of the project and have an estimated salvage value of $77,779. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $80,130 and the...

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%...

A project has an initial requirement of $219,312 for new equipment and $14,180 for net working...

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%...

A project has an initial requirement of $195,422 for new equipment and $14,626 for net working...

A project has an initial requirement of $195,422 for new equipment and $14,626 for net working capital. The installation costs to get the new equipment in working condition are 2,873. The fixed assets will be depreciated to a zero book value over the 5-year life of the project and have an estimated salvage value of $115,708. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $76,206 and the...

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%...

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...

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...

A 5-yr project has an initial requirement of $142495 for new equipment and $8859 for net...

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...

Question