Question: can u post step by step how to get 27,655 6. Samoolo is considering a project that is expected to earn cash revenues of $60,000
6. Samoolo is considering a project that is expected to earn cash revenues of $60,000 per year 20000/5 for 5 years. Samoolo has to purchase equipment today for $20,000 which can be depreciated =4000 straight-line to zero over 5 years with no salvage value. Variable costs are 10% of revenues and 60000x fixed costs are $45,000 per year. No working capital is required. The required return is 15% and 10/=6000 the tax rate is 15%. What is the NPV of the project
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