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2. A project costs $20,000, will be depreciated straight-line to zero over its 3 year life, and will required a net working capital investment of

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2. A project costs $20,000, will be depreciated straight-line to zero over its 3 year life, and will required a net working capital investment of %5,000 up-front. The project generates OCF of $13,000. The fixed assets will be sold for $2,000 at the end of the project. If the firm has a tax rate of 34% and a required return of 12%, what is the project?s NPV

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