Question: points Temple Corp. is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would
points Temple Corp. is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would be depreciated by the straight-line method over its 3-year life, and would have a zero salvage value. No change in net operating working capital would be required. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's NPV? Do not found the intermediate calculations and round the final answer to the nearest whole number. 10.0% $65,000 Risk-adjusted WACC Net investment cost (depreciable basis) Straight-line depr. rate Sales revenues, each year Annual operating costs (excl. depr.) 33.3333% $71,500 $25,000 Tax rate 35.0% a $25,831 b. $22,928 Oc. $33,377 Od. S34,828 e. $29,023
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