Question: A compary 5 considering a 6 year project that requires an initial outlay of $28,000. The project engineer has estimated that the operating cash flows
A compary 5 considering a 6 year project that requires an initial outlay of $28,000. The project engineer has estimated that the operating cash flows wil be 54,000 in year 1.57,000 in yeat 2.57.000 in year 3.57.000 in year 4.57.000 in year 5 , and 58.000 in year 6 . At the end of the project, the equpment will be fully depreciated, classified as 5 year property under MACRS. The project engineer believes the equipment can be sold for $5.000 at the end of the project. If the tax rate is 26% and the required rate of return is 1796 , what is the net present value (NPV) of this project? (Answer to the nearest dollar.)
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