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Calculating the NPV of a project considered by ABC company The company is planning to introduce a new product for a two-year period. It will

Calculating the NPV of a project considered by ABC company

The company is planning to introduce a new product for a two-year period. It will use full straight-line depreciation of the fixed asset over the two-year period. The company's cost of capital is 10% and the tax rate of corporate income is 20%. Compute the NPV of the project based on the data given in the table.

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Year 0 1 2 3 Investment in fixed assets -10000 Sale of fixed assets 500 Revenues 0 4000 30000 Cost of goods sold 2000 10000 Other costs 2000 1000 1000 Working capital 200 400

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