Question: Delco Accents is looking at a project that will require $140,000 in fixed assets and an initial investment in net working capital of $19,000. The

 Delco Accents is looking at a project that will require $140,000

Delco Accents is looking at a project that will require $140,000 in fixed assets and an initial investment in net working capital of $19,000. The project is expected to produce sales of $165,000 each year with associated operating costs of $99,000. The project has a 5-year life. At the end of 5 years, the fixed assets will have zero salvage value. The company uses straight-line depreciation to a zero book value over the life of the project. The tax rate is 21%. The discount rate is 13%. What is the Net Present Value of the project? O A. $68,926.32 B. $55,382.20 O C. $60,930.23 D. $93,293.34 E. $76,339.49 O F. $57,577.78

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!