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A project will use equipment that will cost $400,000, with an additional $75,000 for delivery and installation.Current assets will need to increase by $65,000, while
A project will use equipment that will cost $400,000, with an additional $75,000 for delivery and installation.Current assets will need to increase by $65,000, while current liabilities will not change.An extension to a building to house the equipment is also necessary, with a cost of $500,000.A computer system that is not related to the project will be sold for a salvage value of $75,000, book value $20,000.Your tax rate is 40%.What is the NINV for the project?
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