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Can you find the answer to this question? Please explain / label how all sections are calculated. It would be preferred if this was done
Can you find the answer to this question? Please explain / label how all sections are calculated. It would be preferred if this was done on Excel.
Stella Enterprises is considering a new investment whose data are shown below. The equipment would be depreciated on a straight-line basis over the project's 3-year life, would have a zero salvage value, and would require additional net operating working capital that would be recovered at the end of the project's life. Revenues and other operating costs are expected to be constant over the project's life. What is the project's NPV? (Please do not round the Intermediate calculations and round the final answer to the nearest whole number. WACC: 10.0% Net investment in fixed assets (basis): $75,000 Required net operating working capital: $15,000 Straight line depreciation rate: 33.333% Annual Sales Revenues: $66,000 Annual operating costs (excl. depr.): $25,000 Tax Rate: 35.0% $8,188 $7,536 $9,211 $9,304 $10,049
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