Question: I need help finding the NPV (Question at the bottom) A company selits Widgets to consumers at a price of $82 per unt. The cost

I need help finding the NPV (Question at the bottom) I need help finding the NPV (Question at the bottom) A company

A company selits Widgets to consumers at a price of $82 per unt. The cost to produce Widgets is $32 per unit. The company wilf sell 12,000 Widgets to consumers each year. The foced costs incurred each year will be $220,000 There is an initial investruent to produce the goods of $3,100,000 which inil be deprecialed straight line over the 19 year life of the investment to a salvage value of $0. The opportunily cost of capital is 9% and the tax rate is 34% What is operating cash flow each year? 0 Correct responses 306,273.6841 Ciok, Veity to procied to the next part of the quention Using an coecating cash flow of 300,27360 each year, what is the NPV of this propect? Click Verty is procoed to the next part of the

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!