Discuss the additional investment in working capital


Calculate the NPV for the following capital budgeting proposal: $100,000 initial cost, to be depreciated straight-line over 5 years to an expected salvage value of $5,000, 35% tax rate, $45,000 additional annual revenues, $15,000 additional annual expense, $8,000 additional investment in working capital, and 11% cost of capital. Show your work and formulas.

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Finance Basics: Discuss the additional investment in working capital
Reference No:- TGS0729822

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