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calculate the NPV and Probability index Name (Potential Job): Project A Purchase Price: $2,160,000 Salvage Value: $0 Recovery Period (3,5,7,15,20 yrs): 15 Asset Life (2-20

calculate the NPV and Probability index

Name (Potential Job): Project A

Purchase Price: $2,160,000

Salvage Value: $0

Recovery Period (3,5,7,15,20 yrs): 15

Asset Life (2-20 yrs): 17

Expensing ($10,000 maximum): $7,000

Income Tax Rate: 20.00%

Percent Financed by Loan: 74.00%

Loan Interest Rate: 4.00%

Loan Length (years): 7

Opportunity Cost: 5.00%

Cash Income: $240,899

Cash Expenses: $1,600

Inflation Rate: 2.00%

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