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The company above is considering a 5 year project which would require an initial outlay of...

The company above is considering a 5 year project which would require an initial outlay of $800,000 for the manufacturing equipment (depreciated straight line to zero over 8 years). Salvage value in year 5 will be $200,000. In addition, the company will need $200,000 initial investment in working capital. Tax rate is 34%. The project will produce OCF of $350,000 for 5 years. NPV IRR PI Payback and Discounted Payback

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jeff jeffy answered 1 year ago
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