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Calculate the NPV of the following project Cost Shipping Installation Salvage Value Econ Life 3 4 Depreciation 1 33.33% 2. 44.45% 14.81% 7.41% Annual Unit

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Calculate the NPV of the following project Cost Shipping Installation Salvage Value Econ Life 3 4 Depreciation 1 33.33% 2. 44.45% 14.81% 7.41% Annual Unit Sales Price / Unit Cost / Unit Inflation Net Working Capital Tax Rate Project WACC Opportunity Cost (lease) Externalities (canibalism) $1,250,000 $50,000 $125,000 $100,000 4 Years MACRS Basis 3 Years $1,425,000 10,000 $200 $100 2% 15% (Salese+1) 40% 12% $75,000 $300,000 Sales $45,000 OCE $120,000 OCE $831,881 $285,719 $1,677,965 $972,965

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