Based on the following assumptions, calculate the NPV and comment whether this project is worth pursuing for this European company:
Length of project		8	years					Straight line depreciation
Initial cost of fixed asset		1,425.00		Can sell in Yr 9	75.00			Tax rate	21.00%
Revenues		2,250.00	Starting Yr 1	Growing at	7.00%			Discount rate	16.75%
COGS		80.00%	Starting Yr 1	of Revenue
Other costs		100.00	Starting Yr 0	Growing at	5.00%
Working capital		125.00	Starting Yr 1	Growing at	10.00%
	A. Capital Investment			0	1	2	3	4	5	6	7	8	9
1	CF from investment in FA			( 1,425.00)
2	Sale of fixed assets												75.00
3	Less tax on sale												15.75
4	CF from capital investment			( 1,425.00)									59.25
	B. Operating Cash Flows
5	Revenues				2,250.00
6	COGS
7	Other costs			100.00
8	Depreciation
9	Pretax profit			( 100.00)
10	Tax		21%	( 21.00)
11	Profit after tax			( 79.00)
12	Operating cash flow			( 79.00)
	C. Investment in Working Capital
13	Working capital
14	Change in working capital
15	CF from investment in working capital
	D. Project Valuation
16	Total project cash flow
18	Discounted cash flows		16.75%
	NPV