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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 |
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