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Indigo River Entertainment is considering a project that would last for 2 years and have a cost of capital of 11.63 percent. The relevant level

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Indigo River Entertainment is considering a project that would last for 2 years and have a cost of capital of 11.63 percent. The relevant level of networking capital for the project is expected to be 20,000 dollars immediately (at year 0), 26,000 dollars in 1 year; and 0 dollars in 2 years. Relevant expected revenue, costs, depreciation, and cash flows from capital spending in years 0, 1, and 2 are presented in the following table (in dollars). The tax rate is 50 percent. What is the net present value of this project? Year 0 Year 1 Year 2 $0 168,000 168,000 Revenue $0 70,000 70,000 Costs $0 43,000 Depreciation 43,000 19,000 -91,000 0 Cash flows from capital spending Number

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