Question: It is expected that net working capital will amount to 30% of sales in the following year. For example, the store will need an initial

It is expected that net working capital will amount to 30% of sales in the following year. For example, the store will need an initial preat 0) investment in working capital of 3024,000$30=$216,000. Plant and equipment necessary to establish the giftware business will require an additional investment of $202,000. This investment will be depreciated using MACRS and a 3 year life. After 4 years, the equipment will have an economic and book value of zero. The firm's tax rate is. 11%. What is the net present value of the profect? The discount rate is 12%. Use the MACRS depreciation schedule. (Do not round intermediate calculations. Round your answer to the neorest whole dollar amount)

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