The equipment required for a four year project costs $60,000 and belongs in a 20% CCA class. The project generates after-tax operating income of $13,750 and the fixed assets will be sold for $7,000 at the termination of the project. If the firm has a tax rate of 34% and a required return of 10%, what is the NPV?

Answer rating: 100% (QA)

ANSWER To calculate the NPV of the project we need to find the cash flows for each year and discount ... View the full answer