Question: thanks for the help Gateway Communications is considering a project with an initial fixed assets cost of $1.74 million that will be depreciated straight-line to

thanks for the help

thanks for the help Gateway Communications is considering a project with an

Gateway Communications is considering a project with an initial fixed assets cost of $1.74 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 $232,000. The project will not change sales but will reduce operating costs by $383,500 per year. The tax rate is 21 percent and the required return is 10.7 percent. The project will require $48,000 in net working capital, which will be recouped when the project ends. What is the project's NPV? Multiple Choice $171,046 $176.748 $164,467 S12 $320,515

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