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A project costs $20,000, will be depreciated straight-line to zero over its 3-year life, will require a net working capital investment of $5,000 up front,
A project costs $20,000, will be depreciated straight-line to zero over its 3-year life, will require a net working capital investment of $5,000 up front, has a tax rate of 34% and a required return of 10%. The fixed assets will be sold for $2,000 at the end of year three. The project generates OCF of $13,000. What is the project's NPV? Please give me a clear detailed way on how to find the NPV.
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