Question
A company is considering a project that would require the purchase of an asset for $120,000. The asset belongs in a 30% CCA class and
A company is considering a project that would require the purchase of an asset for $120,000. The asset belongs in a 30% CCA class and is expected to have no salvage value at the end of the 4-year project. The project would require a net working capital investment of $23,000 up-front. The company has a tax rate of 30% and a required return of 13%. The project is expected to generate annual pre-tax cost savings of $48,000. What is the expected present value of after-tax savings for this project?
Do not round intermediate calculations. Round the final answer to 2 decimal places
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