Question: Ole Willie Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2,370,000. The fixed asset will have an
Ole Willie Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2,370,000. The fixed asset will have an after-tax salvage value of $239,400 at the end of the project.
The project has operating cash flows of $1,018,000.
The project requires an initial investment in net working capital of $340,000 which would be recouped at the end of the project.
Assume a 9% required rate of return.
What is the project's NPV?
Im not sure how to figure this one out
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