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NEED ASAP It is expected that net working capital will amount to 20% of sales in the following year. For example, the store will need
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It is expected that net working capital will amount to 20% of sales in the following year. For example, the store will need an initial (year 0) investment in working capital of 0.222,600$48=$216,960. Plant and equipment necessary to establish the giftware business will require an additional investment of $180,000. This investment will be depreciated in an asset class with a CCA rate of 25%. We will assume that the firm has other assets in this asset class. After 4 years, the equipment will have an economic and book value of zero. The firm's tax rate is 35%. The discount rate is 20%. What is the net present value of the project? (Round your answer to the nearest whole dollar amount.) Step by Step Solution
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