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On Field Communications is considering a project with an initial fixed assets cost of $1.59 million that will be depreciated straight-line to a zero
On Field Communications is considering a project with an initial fixed assets cost of $1.59 million that will be depreciated straight-line to a zero book value over the 10-year lifeof the project. At the end of the project the equipment will be sold for an estimated $236,000 before tax. The project will not change sales but will reduce operating costs by $385,500 per year. The tax rate is 40 percent and the required return is 12.1 percent. The project will require $50,000 in net working capital, which will be recouped when the project ends. What is the project's NPV? $196,454 $80,594 $156.350 $149.552 O $88.898
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