Mattice Corporation is considering investing $600,000 in a project. The life of the project would be 6
Fantastic news! We've Found the answer you've been seeking!
Question:
Mattice Corporation is considering investing $600,000 in a project. The life of the project would be 6 years. The project would require additional working capital of $20,000, which would be released for use elsewhere at the end of the project. The annual net cash inflows would be $150,000. The salvage value of the assets used in the project would be $30,000. The company uses a discount rate of 18%. (Ignore income taxes.)
Required:
Compute the net present value of the project.
Related Book For
Principles of Corporate Finance
ISBN: 978-0072869460
7th edition
Authors: Richard A. Brealey, Stewart C. Myers
Posted Date: