Question

project's 3-year life. What is the project's NPV?  Do not round the intermediate calculations and round the...

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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