A firm is analyzing a project that is expected to have annual sales of $850 and annual cost of goods sold of $580. To undertake the project a firm must invest $720 in a fixed asset at the beginning of the project. The fixed asset will be depreciated straight line to zero over the four year life of the project. The asset will have no salvage value. this asset will cause the firm to increase investment and networking capital by $130. When the project is undertaken investment and networking capital will be reserved in the projects and the tax rate is 30% and the discount rate is 12% find the net present value of the project.

A. $125

B. $220

C. $148

D. $65

E. -$120

F. -$29

A firm analyzing project that is expected to have annual sales of $850 and annual cost of goods sold of $580 To undertake the project the firm must invest 5720 in a fue asset at the beginning of the project. The fixed asset will be depreciated straight in to zero over the four year life of the project. This asset wit have no salvage valve This asset will cause the firm to increase the investment in networking capital by 5130 when the projects undertaken the investment in net working capital will be reversed when the project ends. The tax retelt 30and the discount rate is 12% Find the net present value of the project 3125 $220 5148 520