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As the CEO of your firm, you need to evaluate a 3-year project starting from next year, which requires 295313 initial investment. The equipment will
As the CEO of your firm, you need to evaluate a 3-year project starting from next year, which requires 295313 initial investment. The equipment will be depreciated straight line over the project period and the salvage value will be zero. 3,500 units of the product can be sold per year at a price 161 per unit and the cost per unit is 80. The cost of capital is 13% and the tax rate is 19%. The NPV of this project is closest to:
a. 58625
b. 586364
c. 291051
d. 374074
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