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Florin Corporation is considering a new investment whose data are shown below. The equipment would be depreciated on a straight-line basis over the project's 3-year

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Florin Corporation is considering a new investment whose data are shown below. The equipment would be depreciated on a straight-line basis over the project's 3-year life, would have a zero salvage value, and would require additional net operating working capital that would be recovered at the end of the project's life. Revenues and other operating costs are expected to be constant over the project's life. What is the project's NPV? WACC Net investment in fixed assets (basis) Required net operating working capital Straight-line depreciation rate Annual sales revenues Annual operating costs (excl. depr.) Tax rate 12.0% $75,000 $15,000 33.333% $79,000 $25,000 35.0% O$24,383 $25,198 $24,959 $25,997 $25,009

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