A project has an initial requirement of 310000 for fixed


A project has an initial requirement of $310,000 for fixed assets and $62,000 for net working capital. The fixed assets will be depreciated using MACRS 3-Year Class. The project has an estimated salvage value of $160,000 and will be sold after 3 years. All of the net working capital will be recouped at the end of the project. The annual revenue and cost are $180,000 and 30,000 respectively. The discount rate is 18 percent. What is the project's net present value if the tax rate is 34 percent?

$103,600

$14,140

$12,017

$20,904

$22,913

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Financial Management: A project has an initial requirement of 310000 for fixed
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