Problem:
A comp is considering a capital expansion project. The initial investment is $55000. The life of this project is 4 years. The net operating cash flows are each 14800, 13300, 15936 and 32,500.64 The company has a cost of capital of 22% The after tax cost of debt is 7% the cost of equity is 32%.
Required:
What is the Net present value.
Note: Please explain comprehensively and give step by step solution.