A 5-yr project has an initial requirement of $114,625 for new equipment and $9,960 for net...

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A 5-yr project has an initial requirement of $114,625 for newequipment and $9,960 for net working capital. The fixed assets willbe depreciated to a zero book value over 5 years and have anestimated salvage value of $24,773. All of the net working capitalwill be recouped at the end of the project. The annual operatingcash flow is $58,012. The cost of capital is 9% and the tax rate is32%. What is the net present value of the project?

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A 5-yr project has an initial requirement of $114,625 for newequipment and $9,960 for net working capital. The fixed assets willbe depreciated to a zero book value over 5 years and have anestimated salvage value of $24,773. All of the net working capitalwill be recouped at the end of the project. The annual operatingcash flow is $58,012. The cost of capital is 9% and the tax rate is32%. What is the net present value of the project?

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