Question: Use the following information for problems #16 through #18: A 3-year project requires an initial $20,000 investment in net working capital, which will be recovered
Use the following information for problems #16 through #18: A 3-year project requires an initial $20,000 investment in net working capital, which will be recovered when the project ends, and the purchase of fixed assets that cost $300,000. The fixed assets will be fully depreciated, straight-line, to a zero terminal value over the 3-year project life; the market value of the assets at the end of the project are zero. The project is forecast to generate $500,000 in revenues with $300,000 in production costs for each of the 3 years, the firm has a 40% tax rate, and the project required return is 10%. What is the project's net present value (NPV)? O +$92,923 +$21,344 0-$14,707 O +$77.896 -$59,215
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