A project has an initial requirement of 61464 for equipment


A project has an initial requirement of $61,464 for equipment. The equipment will be depreciated to a zero book value over the 5-year life of the project. The investment in net working capital will be $10,062. All of the net working capital will be recouped at the end of the 5 years. The equipment will have an estimated salvage value of $12,655. The annual operating cash flow is $55,946. The cost of capital is 12 percent. What is the project’s net present value if the tax rate is 28 percent?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: A project has an initial requirement of 61464 for equipment
Reference No:- TGS02753389

Expected delivery within 24 Hours