$$uestion $15$

$1$ pts

Use Excel for this question: Assume the following information is given to you for a project. Calculate the Cash Flow from Assets first and then the NPV of this project.

Time horlzon of the project: $4$ years.

Initial investment in the fixed asset: $$4,000,000$

The fixed asset has an 'after$-$tax salvage value' $($ATSV$)$ of $$890,000.$

Operating cash flow: $$900,000$ in year $1,$ then increasing at $10\%$ each year.

Initial investment in NWC is $$200,000.$

Required rate of return is $8\%.$

$-$$$30,876$

$-$$$166,171$

$$28,257$

$$ $$56,234$