Question: Your company is considering a project which will require the purchase of $815,000 in new equipment.The company expects to sell the equipment at the end

Your company is considering a project which will require the purchase of $815,000 in new equipment.The company expects to sell the equipment at the end of the project for 25% of its original cost, but some assets will remain in the CCA class.Annual sales from this project are estimated at $296,000.Initial net working capital equal to 37.00% of sales will be required.All of the net working capital will be recovered at the end of the project. The firm requires a 12.50% return on similar investments.The tax rate is 35%, and the project life is 5 years.There are no other operating expenses.Assume the present value of the CCA tax shield is $138,000.What is the project's NPV?

Question 22 options:

$70,567

$72,376

$74,185

$75,995

$77,804

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