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JavaCity is considering new brewing equipment. The amount of initial investment will be $550 today and the equipment is expected to last for 5 years
JavaCity is considering new brewing equipment. The amount of initial investment will be $550 today and the equipment is expected to last for 5 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 $550 per year and project outflows are expected to be $310 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 7%. 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 SUBMIT
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