A company sells Widgets to consumers at a price of $104 per unit. The cost...
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A company sells Widgets to consumers at a price of $104 per unit. The cost to produce Widgets is $20 per unit. The company will sell 17,000 Widgets to consumers each year. The fixed costs incurred each year will be $240,000. There is an initial investment to produce the goods of $3,100,000 which will be depreciated straight line over the 7 year life of the investment to a salvage value of $0. The opportunity cost of capital is 13% and the tax rate is 27%. Using an operating cash flow of 986,811.43 each year, what is the NPV of this project?
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