8% 9% 4% 7% 10% 4 n 5% 6% % 1 0.96154 0.952380.94340 0.93458 0.92593...

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Accounting

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8% 9% 4% 7% 10% 4 n 5% 6% % 1 0.96154 0.952380.94340 0.93458 0.92593 0.91743 0.90909 2 0.92456 0.90703 0.89000 0.87344 0.85734 0.84168 0.82645 3 0.88900 0.86384 0.83962 0.81630 0.79383 0.77218 0.75131 4 0.85480 0.82270 0.792090.76290 0.73503 0.70843 0.68301 5 0.82193 0.78353 0.74726 0.71299 0.68058 0,64993 0.62092 Calculate the NPV for the following: The required rate of return is 10%. The project has a 5 year life cycle. The equipment costs $30,000 with a salvage value of $20,000. Working capital will increase by $80,000 and will be fully recovered at the end of the life cycle. Annual revenues are expected to be $230,000 with operating expenses of $200,000

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