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NBA stars Kevin Durant and Chris Paul own a company that faces a 34% tax rate and uses a 11% discount rate. They just invested
NBA stars Kevin Durant and Chris Paul own a company that faces a 34% tax rate and uses a 11% discount rate. They just invested $691,000 in equipment for the banking app "Goalsetter" that would be depreciated on a straight-line basis to zero over the 4-year life of the project. The equipment will be salvaged for $189,000 at the end of the project. Kevin Durant and Chris Paul know that the project's operating cash flow will be $194,300 per year. What is the NPV of this project if it requires $59,000 initially for net working capital, which will be recovered at the end of the project? Multiple Choice O $26,160 O -$23,544 -$27,904 O -$31,004 O $33.389
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