Suppose the appropriate discount rate is 13 percent. What is the NPV of the project? Year 0
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Suppose the appropriate discount rate is 13 percent. What is the NPV of the project?
Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | |
Investment | -27000 | ||||
Sales Revenue | 14000 | 14500 | 15000 | 12000 | |
Operating Cost | -3000 | -3100 | -3200 | -2400 | |
Depreciation | -6750 | -6750 | -6750 | -6750 | |
Profit Before TAX | 4250 | 4650 | 5050 | 2850 | |
tax (23%) | 977.5 | 1069.5 | 1161.5 | 655.5 | |
Net Income | 3272.5 | 3580.5 | 3888.5 | 2194.5 | |
Depreciation | 6750 | 6750 | 6750 | 6750 | |
Net working capital | -330 | -380 | -430 | -330 | 1470 |
Cashflow | -27330 | 9642.5 | 9900.5 | 10308.5 | 10414.5 |
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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