An all equity financed project has a 5-year life and is expected to generate the following net income: year 1: $87 year 2: $103 year 3: $101 year 4: $107 year 5: $116 The production equipment for the project was purchased at time 0 for $899 and depreciated straightline to $0 over the life of the project. The equipment is sold for $23 at the end of the project. There is a time 0 investment in net working capital for the project of $17 and then as follows over the life of the project: year 1: $19 year 2: $21 year 3: $20 year 4: $24 year 5: $25 All working capital accounts are zeroed out immediately at the end of the project. The project cost of capital is 9.3%. The tax rate is 21%. What is the NPV of the project? Give your answer to the nearest whole dollar.

Solve it using the following method (find NPV at the end, don't calculate PIV):

\begin{tabular}{|l|r|r|r|r|r|r|} \hline & 0 & 1 & 2 & 3 & 4 & 5 \\ \hline NI & & 87 & 103 & 101 & 107 & 116 \\ \hline nwc & 17 & 2 & 2 & 1 & 4 & 1 \\ \hline "+" depreciation & & 182.4 & 182.4 & 182.4 & 182.4 & 182.4 \\ \hline "-" capex & 899 & & & & & 23 \\ \hline "=" cash flow & 916 & 267.4 & 283.4 & 284.4 & 285.4 & 320.4 \\ \hline \end{tabular} NPV AED193.05