Question
Initial Investment: $15,000 Salvage Value: $2,000 Yearly Revenue: $7,000 Yearly Expenses: $1,500 Annual Depreciation: $3,000 Project Life: 5 years Cost of Capital: 7.2% Tax rate:
Initial Investment: $15,000 Salvage Value: $2,000 Yearly Revenue: $7,000 Yearly Expenses: $1,500 Annual Depreciation: $3,000 Project Life: 5 years Cost of Capital: 7.2% Tax rate: 25%
Calculate the cash flows for each year (years 0 through 5), and the NPV of the project.
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
10th Edition
0201785676, 9780201785678
