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A 5-yr project has an initial requirement of $122569 for new equipment and $8905 for net...

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Finance

A 5-yr project has an initial requirement of $122569 for newequipment and $8905 for net working capital. The installation costis $11745. The fixed assets will be depreciated to a zero bookvalue over 5 years and have an estimated salvage value of $25201.All of the net working capital will be recouped at the end of theproject. The annual operating cash flow is $65755. The cost ofcapital is 10% and the tax rate is 33%. What is the net presentvalue of the project?

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