Question
JavaCity is considering new brewing equipment. The amount of initial investment will be $ 550 today and the equipment is expected to last for 10
JavaCity is considering new brewing equipment. The amount of initial investment will be $550 today and the equipment is expected to last for 10 years with no salvage value. The depreciable base is the entire amount of investment, and straight line depreciation will be used. Project inflows are expected to be $510 per year and project outflows are expected to be $345 per year, both starting in one year and continuing at the end of each year over the project life. JavaCity pays tax at the rate of 30%. What is the net present value of the project if the required rate of return is 6%. Project NPV : $ Place your answer in dollars and cents. Work your analysis using at least 4 decimal places of accuracy. Notes on formatting: Do NOT include a dollar sign or a comma in your NPV. For example, an answer of one hundred twenty dollars and fifteen cents would be placed as 120.15. If applicable, indicate negative amounts with a minus sign in front of the number.
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