Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. A project costs $60,000 and will be depreciated straight-line to zero over its 4 year life The project generates OCF of $18,000 and the

2. A project costs $60,000 and will be depreciated straight-line to zero over its 4 year life The project generates OCF of $18,000 and the fixed assets will be sold for $7,000 at the termination of the project. If the firm has a tax rate of 34% and a required return of 10%. what is the NPV? A) $ 213 B) $1,133 C) $1,839 D) $2,261 E) $2,842

3. A project costs $20,000, will be depreciated straight-line to zero over its 3 year life, and will require 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 10%, what is the project NPV? A) $10,724 B) $11,033 C) $12,077 D) $13,426 E) $15,942

Please go in depth, and show how I can do this on a ti 84

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions