Question: Gateway Communications is considering a project with an initial fixed assets cost of $1.47 million that will be depreciated straight line to a zero book

Gateway Communications is considering a project with an initial fixed assets cost of $1.47 million that will be depreciated straight line to a zero book value over the 9-year life of the project. At the end of the project the equipment will be sold for an estimated $248,000. The project will not change sales but will reduce operating costs by $415,000 per year. The tax rate is 21 percent and the required return is 12.3 percent. The project will require $56,000 in net working capital, which will be recouped when the project ends. What is the project's NPV? Multiple Choice $256,094 $584,027 d $193,231 O $238,300 O $247,833 O
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