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id round the final answer to the nearest whole number Adam Andler Carp is analyzing an average-risk project, and the following data have been developed.

image text in transcribed id round the final answer to the nearest whole number

Adam Andler Carp is analyzing an average-risk project, and the following data have been developed. Llnit sales will be constant, but the sales price should increase with inflation. Fixed costs will also be constant, but variable costs should rise with inflation. The project should last for 3 years. This is just one of many projects for the firm. so any losses on this project can be used to offset gains on other firm projects. What is the project's expected NPV? Do not round the intermediate calculations and round the final answer to the nearest whole number. WACC or cost of capital Net investment cost (depreciable basis) The salvage value of its equipment No other fixed assets will be acquired for following years The company will require an increase in net working capital at the beginning The company will liquidate all '.wrking capital at the end of the project Units sold (constant through years) Average price per unit, Year I Fixed operating cost. exclude depreciation (constant through years) Variable operating cost per unit. Year I Variable operating cost and average price per unit increase every year at inflation rate MARCS 3-year depreciation rate: Depreciation rate for year I Depreciation rate for year 2 Depreciation rate for year 3 Depreciation rate for year 4 Expected inflation rate per year Tax rate 0 575890 959.404 0 651.736 0 356.985 1500% $250,000 $20,000 $10,000 -10.000 60,000 33000 350,000 31700 33.33% 14.81% 7.41% 500% 3500%

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