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A company would like to launch a new production of apple juice in glass bottles. To estimate the effectiveness of the project an external consultant

A company would like to launch a new production of apple juice in glass bottles. To estimate the effectiveness of the project an external consultant was invited, who was paid 10000 dollars. He introduced the management the following information about the project. Equipment will cost 80 000 dollars. Its life cycle coincides with the project duration. The company applies straight line depreciation scheme. To set up the equipment you should pay 8500 before realizing the project. An annual sales revenue will be equal to 76000 dollars, the operational costs will be 65% less than the sales revenue (depreciation expenses are not included). The level of net working capital each year will be equal to 10% of net profit of the following year. Taxation rate = 20%. The project will last for 4 years. Require rate of return is 15%. Find the NPV of the project

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