Question: Gateway Communications is considering a project with an initial fixed assets cost of $1.67 million that will be depreciated straight line to a zero book

 Gateway Communications is considering a project with an initial fixed assets

Gateway Communications is considering a project with an initial fixed assets cost of $1.67 million that will be depreciated straight line to 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 $225,000. The project will not change saics but will reduce operating costs by $380,000 per yeac. The tax rate is 21 percent and the required return is 9.9 percent. The project will require 545.000 in net working capial, which wil be recouped when the project ends, What is the project's NPV? Musipic Choice 5468125 5486,850 $440633 5503.079 3424475

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