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A project has an initial requirement of $350,000 for fixed assets and $30,000 for net working...

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Finance

  1. A project has an initial requirement of $350,000 for fixedassets and $30,000 for net working capital. The fixed assets willbe depreciated to a zero book value over the 3-year life of theproject and have an estimated salvage value of $150,000. All of thenet working capital will be recouped at the end of the project. Theannual operating cash flow is $250,000 and the discount rate is 14percent. What is the project's net present value if the tax rate is20 percent?

    $354,727.22

    $370,174.82

    $301,653.73

    $337,637.10

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