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estimated $226,000. The project will not change sales but will reduce operating costs 6y$380.500 per year The tax fate is 22 when the project ends.

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estimated $226,000. The project will not change sales but will reduce operating costs 6y$380.500 per year The tax fate is 22 when the project ends. What is the project's NPV? $429,318 $446,491 $401,510 $384,053 $461,374 Gateway Communications is considening a project with an initial fixed assets cost of $1.68 million that will be depreciated straight-line to a zero book value over the 10-year life of the project. At the end of the project the equipment will be sold for an estimated $226,000. The project will not change sales but will reduce operating costs by $380,500 per year. The tax rate is 22 percent and the required retum is 10.1 percent. The project will require $45.000 in net working capital, which will be recouped when the project ends. What is the project's NPV

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