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A project costs $20,000, will be depreciated straight-line to zero over its 3 year life, and will require a net working capital investment of $5,000
A project costs $20,000, will be depreciated straight-line to zero over its 3 year life, and will require a net working capital investment of $5,000 up-front. The project generates OCF of $13,000. The fixed assets will be sold for $2,000 at the end of the project. If the firm has a tax rate of 34% and a required return of 10%, what is the project NPV? A) $10,724 B) $11,033 C) $12,077 D) $13,426.
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