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a place requires the purchase of $675,000 in new equipment. It expects to sell the equipment...

a place requires the purchase of $675,000 in new equipment. It expects to sell the equipment at the end of the project for 25% of its original cost, but some assets will remain in the CCA class. Annual sales from this project are estimated at $240,000. Initial net working capital equal to 30.00% of sales will be required. All of the net working capital will be recovered at the end of the project. The firm requires a 9.00% return on similar investments. The tax rate is 35%, and the project life is 5 years. There are no other operating expenses. Assume the present value of the CCA tax shield is $110,000. What is the project's NPV?

$116,787

$119,944

$123,100

$126,257

$129,413

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 2 years ago
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