Ivashina Enterprises is considering a new project. The project will require $312,159 for new fixed assets, $159,819 for additional inventory, and $32,964 for additional accounts receivable. Accounts payable are expected to increase by $79,886. Long-term debt is expected to increase by $281,410. The project has a 5-year life. The fixed assets will be depreciated straight-line to a zero book value over the project's life. At the end of the project, the fixed assets can be sold for 26% of their original cost. The net working capital returns to its original level at the end of the project. The project is expected to generate sales of $894,958 and costs of $560,081 yearly over the project's life. The tax rate is 38%, and the required rate of return is 12%.

What is the NPV of the project? Round your responses to two decimal points. Do not include the $ sign.

Answer rating: 100% (QA)

The net present value NPV is equal to the present value of the projects cash inf... View the full answer