Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Company FIN3610-ETRA just launched a new project. The required return is 11% The project will last for 3 years. Every year, the revenues generated from

image text in transcribed

Company FIN3610-ETRA just launched a new project. The required return is 11% The project will last for 3 years. Every year, the revenues generated from the project will be $1,785,000, and the costs from the project will be $680,000. The initial Investment on this project is equal to $2.31 milion, which will follow the three year MACRS depreciation schedule (MACRS schedule). The salvage value will be $405,000 In addition, the project requires an initial $400,000 investment in net working capital If the tax rate is 25%, what is the NPV of this project? (Do not round Intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to two decimal places, e... 1,234,567.89.) NPV

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Electronic Waste An Actual Gold And Silver Mine

Authors: Antonio Alcivar

1st Edition

979-8367641059

More Books

Students also viewed these Finance questions

Question

What is the hallmark clinical feature of a molar pregnancy?

Answered: 1 week ago

Question

5-50. Based on the information, I think we should buy the property.

Answered: 1 week ago