Saturday, 28 September 2019

A project has an initial requirement of $195,422 for new equipment and $14,626 for net working


A project has an initial requirement of $195,422 for new equipment and $14,626 for net working capital. The installation costs to get the new equipment in working condition are 2,873. The fixed assets will be depreciated to a zero book value over the 5-year life of the project and have an estimated salvage value of $115,708. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $76,206 and the cost of capital is 13% What is the project's NPV if the tax rate is 34%? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

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