Mattice Corporation is considering investing $600,000 in a project. The life of the project would be 6
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Question:
Mattice Corporation is considering investing $600,000 in a project. The life of the project would be 6 years. The project would require additional working capital of $20,000, which would be released for use elsewhere at the end of the project. The annual net cash inflows would be $150,000. The salvage value of the assets used in the project would be $30,000. The company uses a discount rate of 18%. (Ignore income taxes.)
Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided.
Required:
Compute the net present value of the project. (Negative amount should be indicated by a minus sign. Round your intermediate calculations and final answer to the nearest whole dollar amount.)
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