Question: Gateway Communicatiens is considering a project with an initial fixed assets cost of $1.53 million that will be depreciated straight-line 10 a zero book value

Gateway Communicatiens is considering a project
Gateway Communicatiens is considering a project with an initial fixed assets cost of $1.53 million that will be depreciated straight-line 10 a zero book value over the 10-year life of the project. At the end of the project the equipment will be sold for an estimated $236,000. The project will not change sales but will reduce operating costs by $385,500 per year. The tax rate is 22 percent and the required return is 111 percent. The project will require $50,000 in net working capital, which will be recouped when the project ends. What is the project's NPV? Muftiple Choice O $410.277 $460,539 $475.890 $442.826 o O O O $392.439

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