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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