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Question: A project has an initial requirement of $235,771 for new equipment and $10,621 for net working capital. The installation costs are expected to be $15,302. The fixed assets will be depreciated to a zero book value over the 4-year life of the project and have an estimated salvage value of $144,149. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $69,607 and the cost of capital is 5% What is the project's NPV if the tax rate is 35%?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M93047140

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