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Desai Industries in analyzing an average-risk project, and the following data have been developed. Unit sales will be constant, but the sales price should increase

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Desai Industries in analyzing an average-risk project, and the following data have been developed. Unit sales will be constant, but the sales price should increase with inflation. Fixed costs will also be constant, but variable costs should rise with inflation. The project should last for 3 years. Under the new tax law, the equipment used in the project is eligible for 100% benus depreciation, so it will be fully depreciated at t-o. At the end of the project's life, the equipment would have no salvage value. No change in net operating working capital CHOWC) would be required for the project. This is just one of many projects for the firm, so my lowes on this project can be used to offset gains to other firm projects. What is the project's expected NPV? Do not round the intermediate calculation and round the final answer to the nearest whole number WACC 10.0W Equpliment cost 5200,000 Units sold 56,000 Average price per unit, Year 1 525.00 Faxed op costs constant) Variable op. costunit. Year $20.20 Expected annual inflation rate 5.00 $150.000 Tax rate 25.0W 177 5434 595144 191.384

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