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Foley Systems is considering a new project whose data are shown below. Under the new tax law, the equipment for the project is eligible for
Foley Systems is considering a new project whose data are shown below. Under the new tax law, the equipment for the project is eligible for 100% bonus depreciation, so it will be fully depreciated at t=0. After the project's 4-year life, the equipment would have $8,500 salvage value. The project would require additional net operating working capital (NOWC) that would be recovered at the end of the project's life. Revenues and operating costs are expected to be constant over the project's life. 1. Find the annual cash flows of the project. 2. Find the NPV, IRR, MIRR, Pay back period and Discounted payback period. Do not round the intermediate calculations and round the final answer to the nearest whole number
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