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A company is considering a new four-year project with an initial investment requirement of $280140. The equipment will be depreciated straight-line to zero over the
A company is considering a new four-year project with an initial investment requirement of $280140. The equipment will be depreciated straight-line to zero over the life of the project and will be worthless at the end of the project. Sales are estimated at $222,110 .It also requires an additional investment in net working capital of $6,000 initially, which will be fully recovered at the end of the project. The tax rate is 24%. The discount rate is 11%. What is the NPV?
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