Question: Kims Konstructions has assembled the following data for a proposed straw-reinforced brick maker (SRBM): SRBM Cost: $26,000 Life: 5 years Revenue (p.a.) $11,000 Operating Expenses

Kim’s Konstructions has assembled the following data for a proposed straw-reinforced brick maker (SRBM): SRBM Cost: $26,000 Life: 5 years Revenue (p.a.) $11,000 Operating Expenses (p.a.) $3,000 Depreciation (p.a.) $5,000 Salvage Value: $2000 If a firm requires a 10% p.a. return (after tax at the effective tax rate) on its investments and has an effective tax rate of 20%, calculate the NPV of the SRBM.

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