Question
In: Finance
FIN220 Co. is considering a three-year project that requires an initial fixed asset investment of 15...
FIN220 Co. is considering a three-year project that requires an initial fixed asset investment of 15 million Baht. The asset will be depreciated straight-line to zero over its three-year tax life, after which time it will have a market value of 2 million Baht. The project is estimated to generate 21.5 million Baht in annual sales, with costs of 12.5 million Baht. The project also requires an initial investment in net working capital of 234,000 Baht. The tax rate is 28 percent and the required return on the project is 14 percent. What is the project’s NPV?
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-4,190,362.69 |
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4,339,114.00 |
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4,190,362.69 |
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-4,339,114.00 |
Solutions
jeff jeffy answered 1 year agoRelated Solutions
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