Question
A retailer is looking to expand operations at all of their stores for an initial investment $680. This investment will be depreciated on a straight
A retailer is looking to expand operations at all of their stores for an initial investment $680. This investment will be depreciated on a straight line basis over the project's 8 year life. This expansion is expected to produce annual cash inflows of $570 in each year over the life of the project, while also producing annual cash outflows of $300 in each year over the life of the project. What is the project's NPV if the corporate tax rate is 36% and the project's required rate of return is 7.25%?
$___________________
Place your answer in dollars and cents without the use of a dollar sign or a comma. If applicable, negative values should be entered with a minus sign in front of the number. Work all analysis out using at least 4 decimal places of accuracy.
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