Question: Foley systems is considering a new investment whose data are shown below. the equipment would be depreciated on a straight -line basis over the project's

Foley systems is considering a new investment whose data are shown below. the equipment would be depreciated on a straight -line basis over the project's 3 year life, would have a zero salvage value and would require no additional net operating working capital. revenues and operating costs are expected to be constant over the project life. the tax rate is 35%. what is NPV,IRR, and probability index?

cost of capital 10%

net investment 75,000

revenue 75,000

other op costs 25,000

depreciation 33.33%

tax rate 35%

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