Question

The Best Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 21 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project.

Compute the incremental cash flows of the investment for year 0 (The last row in the suggested blank table above)

Compute the incremental cash flows of the investment for year 1 (The last row in the suggested blank table above)

Compute the incremental cash flows of the investment for year 2 (The last row in the suggested blank table above)

Compute the incremental cash flows of the investment for year 3 (The last row in the suggested blank table above

Compute the incremental cash flows of the investment for year 4 (The last row in the suggested blank table above)

Suppose the appropriate discount rate is 10 percent. What is the NPV of the project?

Answer 1

please ? the answer.