You are considering a new project that requires an initial investment of $500. After year 3, cash flows will grow at a rate of 3% each year into perpetuity. The corporate tax rate is Tc=35%. R= 11.30% What is the NPV of the project?

Use this chart for your calculations.

	Year 0	Year 1	Year 2	Year 3	TV
EBIAT	0	20	40	60
Depreciation	0	10	10	10
Initial CAPX	500	0	0	0
Ongoing CAPX	0	5	10	20
Current Assets	0	30	40	50
Current Liabilities	0	15	20	30
FCF

1) (15 points) You are considering a new project that requires an initial investment of $500. After year 3 , cash flows will grow at a rate of 3% each year into perpetuity. The corporate tax rate is Tc=35%.R=11.30% What is the NPV of the project? Use this chart for your calculations