Calculate the NPV using EBIT of $1 million per yea (forever, not change).  No capital investment but working capital of Accounts Receivable $3 million, Inventory $5 million, and Accounts Payable $5 million.  Using tax rate of 25% and cost of capital is 10%.

Answer rating: 100% (QA)

To calculate the NPV we need to discount the cash flows EBIT generated by the project using the cost ... View the full answer