the Net Working Capital Spending numbers are actually the Change in NWC (not the level)....
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the Net Working Capital Spending numbers are actually the Change in NWC (not the level).
2. Calculating Project NPV The Best Manufacturing Company is consid investment. Financial projections for the investment are tabulated he tax rate is 34 percent. Assume all sales revenue is reccived in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project. re. The corporate Year 0 YearYear 2 Year 3 Year 4 Investment Sales revenue Operating costs Depreciation Net working capital $27,400 $12,900 $14,000 $15,200 $11,200 2,7002,8002,900 2,100 6,8506,8506,850 6,850 300 200 225 150 spending a. Compute the incremental net income of the investment for each year. b. Compute the incremental cash flows of the investment for each year. c. Suppose the appropriat e discount rate is 12 percent. What is the NPV of the project
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