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Intro Consider a project with a 3-year life. The initial cost to set up the project is $100,000. This amount is to be linearly depreciated
Intro Consider a project with a 3-year life. The initial cost to set up the project is $100,000. This amount is to be linearly depreciated to zero over the life of the project and there is no salvage value. The required return is 14% and the tax rate is 34%. You've collected the following estimates: Part 1 Attempt 1/10 for 10 pts. What is the annual cash flow from assets in the base case? Part 2 Attempt 1/10 for 10 pts. What is the NPV in the base case? Part 3 Attempt 1/10 for 10 pts. What is the NPV in the pessimistic case? What is the NPV in the optimistic case
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