Question: What is the net present value for this project? PERIOD 0 1 2 3 4 EBIT $ 4 , 0 0 0 $ 5 ,
What is the net present value for this project?
PERIOD
EBIT $ $ $ $
The above table illustrates earnings before interest and taxes for a capital investment project. Additional information for this project:
initial cost of the investment $
change in net working capital $and all of this is recoverable at end of the project
erosion costs are $ $ and $ for Years and respectively
tax rate
WACC
depreciation straight line over six years
salvage value is not an issue
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