Question
A project costs $50,000, will be depreciated straight line to zero over its 3 year life, and will require a net working capital investment of
A project costs $50,000, will be depreciated straight line to zero over its 3 year life, and will require a net working capital investment of 10,000 up front and get it back in the end. The project generates OCF of 30,000. The fixed assets sold for 8,000 at the end of the project. If the firm has a tax rate of 35% and a required return of 12%, what is the project NPV?
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Valuation Workbook Step By Step Exercises And Tests To Help You Master Valuation
Authors: McKinsey & Company Inc.
7th Edition
1119611814, 978-1119611813
