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Emulsified Fat Offal Tube, Inc. is considering a new 4-year project. The necessary fixed assets will...

Emulsified Fat Offal Tube, Inc. is considering a new 4-year project. The necessary fixed assets will cost $193,000 and be depreciated on a 3-year MACRS and have no salvage value. The MACRS percentages each year are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. The project will have annual sales of $130,000, variable costs of $34,900, and fixed costs of $12,800. The project will also require net working capital of $3,400 that will be returned at the end of the project. The company has a tax rate of 34 percent and the project’s required return is 14 percent. What is the net present value of this project?

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

JUST WRITTEN IN EXCEL, NO EXCEL FUNCTION IS USED

jeff jeffy answered 1 year ago
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