What is the NPV of a project that costs $200,000, provides $43,000 in after-tax cash flows (excluding
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What is the NPV of a project that costs $200,000, provides $43,000 in after-tax cash flows (excluding the CCA tax shield) annually for six years , requires a $5,000 increase in net working capital, and depreciates the asset at 15 percent declining balance over six years and sold at zero salvage value? The discount rate is 14 percent. The tax rate is 40 percent.(Assume the half-year rule applies and working capital is recovered at the end of the project)
Related Book For
Fundamentals Of Financial Management
ISBN: 9780357517574
16th Edition
Authors: Eugene F. Brigham, Joel F. Houston
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