Question: No change in net operating working capital (NOWC) would be required for the project. This is just one of many projects for the firm, so

No change in net operating working capital (NOWC) would be required for the project. This is just one of many projects for the firm, so any losses on this project can be used to offset gains on other firm projects. What is the project's expected NPV? Do not round the intermediate calculations and round the final answer to the nearest whole number.

WACC

10.0%

Equpiment cost

$200,000

Units sold

52,000

Average price per unit, Year 1

$27.00

Fixed op. costs (constant)

$150,000

Variable op. cost/unit, Year 1

$21.80

Expected annual inflation rate

5.00%

Tax rate

25.0%

a. $140,008

b. $90,008

c. $98,560

d. $123,063

e. $48,560

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