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A compony is considering a new inverment whase clatex are shoun belows the equipmont would be depreciated on a stright-line basis orer the project's 3-year
A compony is considering a new inverment whase clatex are shoun belows the equipmont would be depreciated on a stright-line basis orer the project's 3-year hife, would have zero Salvage value, and ward require some diditional working capital that waid be recovered at the end of the project's life. Revenues and other operating costs are expected to be constant over the pryjects ife. What is ere prujects project cost of capital (z) 10.0% wet investment in fixed cossets (bass) 365,000 Required new woting capital 525, 000 Stright lix deprec vate 33.333% Sales Revence, each year $75,000 operating costs (excl. deprec.) each year $25,000 tax Rate
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