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Ivashina Enterprises is considering a new project. The project will require $365,964 for new fixed assets, $176,261 for additional inventory, and $36,071 for additional accounts
Ivashina Enterprises is considering a new project. The project will require $365,964 for new fixed assets, $176,261 for additional inventory, and $36,071 for additional accounts receivable. Accounts payable are expected to increase by $86,084. Longterm debt is expected to increase by $264,452. The project has a 5 -year life. The fixed assets will be depreciated straight-line to a zero book value over the project's life. At the end of the project, the fixed assets can be sold for 24% of their original cost. The net working capital returns to its original level at the end of the project. The project is expected to generate sales of $517,441 and costs of $531,109 yearly over the project's life. The tax rate is 33%, and the required rate of return is 8%. What is the NPV of the project? Round your responses to two decimal points. Do not include the $ sign
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