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Year O Revenues Costs of Goods Sold Gross Profit Selling, General and Admin Qepreciation EBIT Income tax (35%) Net Income Capital Purchases Changes to
Year O Revenues Costs of Goods Sold Gross Profit Selling, General and Admin Qepreciation EBIT Income tax (35%) Net Income Capital Purchases Changes to NWC Year 1 800,000 -320.000 480,000 -105,000 -200.000 175,000 -61,250 113,750 -12,000 Year 2 800,000 ago,ooo -105,000 -200,000 175,000 -61,250 113,750 Year 3 800,000 480,000 -105,000 -200,000 175,000 -61,250 -600,000 +36,000 -12,000 113,750 -12,000 Cromwell Industries is considering a new project which will have costs: revenues: etc. as shown by the data above. Ifthe cost of capital is what is the net present value OTPV) of this project?
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