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Investment in equipment Annual net cash inflows Salvage value of the equipment Working capital required Life of the project Required rate of return $75,000 $30,000
Investment in equipment Annual net cash inflows Salvage value of the equipment Working capital required Life of the project Required rate of return $75,000 $30,000 $10,000 $50,000 5 years 10% The working capital will be released for use elsewhere at the conclusion of the project Required: Compute the project's net present value; determine if this is a project to move forward with or not Req a: Compute NPV Req b: Move forward with this project, why or why not
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