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Can someone explain how to get this answer please? What is the NPV of the tablet project, which is a 3-year project being evaluated by
Can someone explain how to get this answer please?
What is the NPV of the tablet project, which is a 3-year project being evaluated by Sub Woophers, that involves Sub Woophers X launching a line of speakers for tablets?The project would involve an initial investment in equipment of $180000 today. Cash flows from capital spending would be $0 in year 1,$0 in year 2 , and $46000 in year 3 Operating cash flows are expected to be $40000 in year 1,$100000 in year 2 , and $140000 in year 3. The cash flow effects from the change in net working capital are expected to be $15000 today; $5000 in 1 year; $120000 in 2 years; and $10000 in 3 years.The tax rate is 40 percent. The cost of capital is 6.2 percent. The firm would borrow at an interest rate of 6.93 percent by receiving $180000 today \& paying back $240000 in 3 years ($40,000 of interest &$180000, of principal)(answer must be rounded to a whole number) Selected Answer: [None Given] Correct Answer: 82,052 Answer range +/0(8205282052) What is the NPV of the tablet project, which is a 3-year project being evaluated by Sub Woophers, that involves Sub Woophers X launching a line of speakers for tablets?The project would involve an initial investment in equipment of $180000 today. Cash flows from capital spending would be $0 in year 1,$0 in year 2 , and $46000 in year 3 Operating cash flows are expected to be $40000 in year 1,$100000 in year 2 , and $140000 in year 3. The cash flow effects from the change in net working capital are expected to be $15000 today; $5000 in 1 year; $120000 in 2 years; and $10000 in 3 years.The tax rate is 40 percent. The cost of capital is 6.2 percent. The firm would borrow at an interest rate of 6.93 percent by receiving $180000 today \& paying back $240000 in 3 years ($40,000 of interest &$180000, of principal)(answer must be rounded to a whole number) Selected Answer: [None Given] Correct Answer: 82,052 Answer range +/0(8205282052)Step by Step Solution
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