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I figured out the operating cash flow, which is $919,433.33, but cannot figure out how to find the NPV from that point. Can someone help
I figured out the operating cash flow, which is $919,433.33, but cannot figure out how to find the NPV from that point. Can someone help me with this and is there an Excel function for this?
H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $215 million. The fixed asset will be depreciated straight- line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $2.23 million in annual sales, with costs of $1,25 million. Assume the tax rate is 23 percent and the required return on the project is 14 percent. What is the project's NPV? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Net present value Step by Step Solution
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