Question: please help Gateway Communications is considering a project with an initial fixed assets cost of $1.69 million that will be depreciated straight-line to a zero

please help

Gateway Communications is considering a project with an initial fixed assets cost of $1.69 million that will be depreciated straight-line to a zero book value over the

10-year life of the project. At the end of the project the equipment will be sold for an estimated $230,000. The project will not change sales but will reduce operating costs by $382,500 per year. The tax rate is 21 percent and the required return is 10.5 percent. The project will require $47,000 in net working capital, which will be recouped when the project ends. What is the project's NPV?

A company is considering a new 6-year project that will have annual sales of $210,000 and costs of $130,000. The project will require fixed assets of $249,000, which will be depreciated on a 5-year MACRS schedule. The annual depreciation percentages are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, 11.52 percent, and 5.76 percent, respectively. The company has a tax rate of 21 percent. What is the operating cash flow for Year 2?

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