Question: 0.25 pa QUESTION 6 Foley Systems is considering a new investment whose data are shown below. The equipment would be depreciated on a straight-line basis
0.25 pa QUESTION 6 Foley Systems is considering a new investment whose data are shown below. The equipment would be depreciated on a straight-line basis over the project's 3-year life, would have a zero salvage value, and would require additional net operating working capital that would be recovered at the end of the project's life. Revenues and other operating costs are expected to be constant over the project's life. What is the project's NPV? (Hint: Cash flows from operations are constant in Years I to 3.) Do not round the intermediate calculations and round the final answer to the nearest whole number. 10.0% WACC Net investment in fixed assets (basis)$75,000 Required net operating working capital S15,000 Straight-line depreciation rate Annual sales revenues 33.333% S50,000 S25,000 35.0% Annual operating costs (excl. depr.) Tax rate o a.S-19,043 b.$-18,380 c. S. 17.221 dS-20.368 e.S-16,559 Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers
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