15. The company uses funded reserve ($5,000) to cover the fire loss. Suppose the annual rate of return of the funded reserve is 10%, the NPV of this project is $ Initial investment $100,000 Life of project 5 years Expected annual loss from fire $4,000 Annual cash revenue $30,000 Tax rate 30% Discount factor 4 15. The company uses funded reserve ($5,000) to cover the fire loss. Suppose the annual rate of return of the funded reserve is 10%, the NPV of this project is $ Initial investment $100,000 Life of project 5 years Expected annual loss from fire $4,000 Annual cash revenue $30,000 Tax rate 30% Discount factor 4