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A proposed project lasts 5 years and has an initial fixed asset investment of 2 million dollars, depreciated straight line to zero over the project
A proposed project lasts 5 years and has an initial fixed asset investment of 2 million dollars, depreciated straight line to zero over the project life. Has an initial investment in networking capital of 200,000. The project will generate 600,000 in annual operating cash flow. the fixed asset will have a salvage value of 200,000 at the end of the project. Tax rate is 34%. There is a required return of 15%. What's the NPV? Whats the IRR? What's the payback based on cashflow?
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