A company is considering a 6-year project that would require a $80,000 initial Investment in net...

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A company is considering a 6-year project that would require a $80,000 initial Investment in net working capital and is expected to create cost savings of $40,000 before-tax annually. The tax rate is 25% and the company requires a 14.5% return. If you were calculating the NPV for this project, what amount in your NPV analysis would you include for the present value of net working capital? A company is considering a 6-year project that would require a $80,000 initial Investment in net working capital and is expected to create cost savings of $40,000 before-tax annually. The tax rate is 25% and the company requires a 14.5% return. If you were calculating the NPV for this project, what amount in your NPV analysis would you include for the present value of net working capital?

Answer rating: 100% (QA)

In calculating the NPV for the project we need to consider the initial invest... View the full answer