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Gateway Communications is considering a project with an initiat fixed assets cost of 5169 milion that will be depreciated straight-line to a zero book value

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Gateway Communications is considering a project with an initiat fixed assets cost of 5169 milion 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 $230,000. The project will not change sales but will reduce operating costs by $382,500 per year. The tax rate is 21 percent and the required return is 10.5 percent. The project will require $47,000 in net working capital, which will be recouped when the project ends. What is the project's NPV? Multiple Choice $158,873 ces $113,015 $153,748 $378.242 $147835

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