Question: Prepare an excel spreadsheet for the solution. Ensure that all calculations are performed within excel. Use the NPV function for the final answer. Husker Fields
Prepare an excel spreadsheet for the solution. Ensure that all calculations are performed within excel. Use the NPV function for the final answer.
Husker Fields is evaluating a new order processing system. The cost of the system is $385,000 which will be depreciated on a straight-line basis to zero . This project will run for 5 years. At the end of the project, a new order processing system may be sold for $60,000. This order processing system will allow Husker Fields to save two salaried positions/benefits in the amount of $135,000(pretax) each year. This system will require an investment in NWC of $35,000 at the beginning of the project. The firm's tax rate is 21% and the cost of capital is 10%.
What is the NPV?
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