Question: Question 49 2 pts Given the following information and assuming straight-line depreciation to zero, what is the NPV for this project? The initial investment in
Question 49 2 pts Given the following information and assuming straight-line depreciation to zero, what is the NPV for this project? The initial investment in fixed assets is $30,000, the initial investment in net working capital is $5,000, the life of the project is expected to be 4 years, and the OCF per year is $9,000. The equipment can be sold for $2,000 at the end of the project. Assume a tax rate of 20%, and a discount rate of 8%. +$2,139.15 -$339.66 +$1,279.20 0-$6,301.49
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
