Given the following information and assuming straight-line


Given the following information and assuming straight-line depreciation to zero, what is the NPV of this project?

Initial investment = $500,000 Life = 5 years

Cost savings = $150,000 per year Salvage = $30,000 in year 5

Tax rate = 34% Discount rate = 14%

  1. -$149,841
  2. -$33,117
  3. $0
  4. $19,800
  5. $30,650 

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Finance Basics: Given the following information and assuming straight-line
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