project's 3year life. What is the project's NPV? Do
not round the intermediate calculations and round the final answer
to the nearest whole number.
WACC 
10.0% 
Net investment in fixed assets (depreciable basis) 
$70,000 
Required net operating working capital 
$10,000 
Straightline depreciation rate 
33.333% 
Annual sales revenues 
$70,000 
Annual operating costs (excl. depreciation) 
$30,000 
Expected pretax salvage value 
$5,000 
Tax rate 
35.0% 
a. 
0$12,982 

b. 
0$14,922 

c. 
0$14,773 

d. 
0$17,011 

e. 
0$15,668 
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