project's 3-year 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 |
Straight-line depreciation rate |
33.333% |
Annual sales revenues |
$70,000 |
Annual operating costs (excl. depreciation) |
$30,000 |
Expected pre-tax 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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