Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a 5-yr project has an initial requirement of $1424

A 5-yr project has an initial requirement of $142495 for new equipment and $8859 for net...

60.1K

Verified Solution

Question

Finance

A 5-yr project has an initial requirement of $142495 for newequipment and $8859 for net working capital. The installation costis $14729. The fixed assets will be depreciated to a zero bookvalue over 5 years and have an estimated salvage value of $27974.All of the net working capital will be recouped at the end of theproject. The annual operating cash flow is $56124. The cost ofcapital is 10% and the tax rate is 28%. What is the net presentvalue of the project?

Enter your answer rounded off to two decimal points. Do notenter $ or comma in the answer box. For example, if your answer is$12.345 then enter as 12.35 in the answer box.

Answer & Explanation Solved by verified expert
3.8 Ratings (684 Votes)
SEE THE    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

***** A Ferris wheel is 25 meters in diameter and boarded from a platform that is 1...

Statistics
1.2K views

4. You have collected weekly earnings and age data from a sub-sample of 1,744 individuals using...

Chemistry
1.2K views

How much ice (in grams) would have to melt to lower the temperature of 355 mL...

Psychology
1.2K views

This week, we covered the challenges that criminal justice agencies incur when developing or advancing technology....

Statistics
1.2K views

A computer system administrator notices that computers running a particular operating system seem to freeze up...

Biology
1.2K views

Simple prokaryotic organisms have been on Earth for over 3 billion years and have been...

Statistics
1.2K views

In a particular survey of internet users, 3663 respondents say that they use social networking...

Algebra
1.2K views

3 Using a compass and straightedge construct a line that passes through E and is...

Accounting
1.2K views

There are basically two distinct methods of calculating product costs. Compare and contrast the two...

Accounting
1.2K views

michelle mckinley owns the following non- exempt properties a property valued at $500,000. included in...

Accounting
1.2K views

202 Figure x then credits Hans Distribution, Inc. 7290 S. Prospect Street Ravenna, OH 44266...

Accounting
1.2K views

ABC Hardware Store had the following transactions during the year starting January 1, 2020. At...