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A project costs $26,000, will be depreciated straight-line to zero over its 5 year life, and will require a net working capital investment of $1,000
A project costs $26,000, will be depreciated straight-line to zero over its 5 year life, and will require a net working capital investment of $1,000 up-front (which will be recovered at the end of project's life). The project has a required return of 12%. The project generates OCF of $13,000. What is the project's NPV? (Draw a timeline table to help with the calculation)
a.$22,470
b.$21,230
c.$25,590
d.$20,430
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