Connectdots corp is considering making a new product net


ConnectDots Corp. is considering making a new product. The new product is expected add $3.5 millions to the firm's sales and the expected costs are $0.94 millions. The shareholders of ConnectDots requires 18.85% return and the corporate tax rate is 39 percent. This project has 3 years life and requires $4.91 millions investment in fixed assets. The fixed assets will be depreciated straight-line and the expected salvage is zero. The project requires $20,000 investment in net working capital. Net working capital will be recovered at the end. Calculate the NPV of the project. Round to two decimal places.

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Financial Management: Connectdots corp is considering making a new product net
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