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I have never used this feature before and do not know if you can see which question I am on, therefore I posted the question
I have never used this feature before and do not know if you can see which question I am on, therefore I posted the question here. A project costs $40,000, will be depreciated straight-line to zero over its 3 year life, and will require a net working capital investment of $5,000 up-front. The firm has a tax rate of 34% and a required return of 10%. The project generates OCF of $17,000. What is the projects NPV?
This problem was already solved on Chegg but I do not know how they got the 2.487 and .751 for this?
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