Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Given the following information and assuming straight-line depreciation to zero, what is the NPV of this project? Initial investment = $100,000; operating costs = $45,000
Given the following information and assuming straight-line depreciation to zero, what is the NPV of this project? Initial investment = $100,000; operating costs = $45,000 per year; project life =4years; pretax salvage value = $10,000 in year 4; tax rate = 35%; discount rate = 12%.
| 1. | $120,221.16 | |
| 2. | -$20,221.16 | |
| 3. | $119,550.14 | |
| 4. | $19,550.14 | |
| 5. | $4,621.00 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
