Question
27) The Down Towner is considering a 4-year project that will require $164,800 for fixed assets and $42,400 for net working capital. The fixed assets
27) The Down Towner is considering a 4-year project that will require $164,800 for fixed assets and $42,400 for net working capital. The fixed assets will be depreciated straight-line to a zero book value over the life of the project. At the end of the project, the fixed assets can be sold for $37,500 (after-tax) and the net working capital will return to its original level. The project is expected to generate annual sales of $195,000 and cash-costs of $117,500. The tax rate is 21 percent and the required rate of return is 15 percent. What is the projects net present value?
Please provide excel formulas and table
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