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 3-year
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 zeto salvage value and would require additional net operating working capital that would be recovered at the end of the project's life. Reveries and other operating costs are expected to be constant over the project's life. What is the project's NPV (Hint: Cash flows from operations are constant in Years I 803) Do not round the intermediate calculations and round the final answer to the nearest whole number 100% 375.000 $15.000 WACC Net investment in fixed assets (basis) Required net operating working capital Straight-line depreciation rate Annual sales revenue Anaal operating costs (nl. dopr.) 33.333% $56.000 $25.000 35.0 Tax rate $6,50 56,100 0.56,860 0.57,615
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