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can you show work not through excel please 10. Gateway Communications is considering a project with an initial fixed asset cost of $2.168 million which
can you show work not through excel please
10. Gateway Communications is considering a project with an initial fixed asset cost of $2.168 million which will be depreciated straight-line to a zero book value over the 10-year life of the project . Ignore bonus depreciation. At the end of the project the equipment will be sold for an estimated $495,000. The project will not directly produce any sales but will reduce operating costs by $634,000 a year. The tax rate is 21 percent. The project will require $128.000 of net Working Capital which will be recouped when the project ends. What is the net present value at the required rate of return of 14.3 percent? 30 Points) Step by Step Solution
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