Parkcrest, Inc , is considering a new 10 year expansion project with an initial fixed asset investment of $132,900 The fixed asset will be depreciated straight line to 0 over a 10 year tax life after which time it will be worthless The project is estimated to generate $99,000 in annual sales with cost of $34,300 The tax rate is 22 and the required return is 14 8 What is the net present value of this project and its IRR ParkCrest, Inc, is considering a new 10 year expansion project with an initial fixed asset investment of $132,900 The fixed asset will be depreciated straight line to zero over its 10 year tax life after which time it will be worthless The project is estimated to generate $99,000 in annual sales with costs of $34,300 The tax rate 22 and the required return is 14 8 What is the net present value of this project and its IRR

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Posted on Oct 03, 2024

Parkcrest, Inc., is considering a new 10 year expansion project with an initial fixed asset investment of $132,900. The fixed asset will be depreciated straight

Parkcrest, Inc., is considering a new 10 year expansion project with an initial fixed asset investment of $132,900. The fixed asset will be depreciated straight line to 0 over a 10 year tax life after which time it will be worthless. The project is estimated to generate $99,000 in annual sales with cost of $34,300. The tax rate is 22% and the required return is 14.8%. What is the net present value of this project and its IRR%?

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ParkCrest, Inc, is considering a new 10-year expansion project with an initial fixed asset investment of $132,900. The fixed asset will be depreciated straight-line to zero over its 10-year tax life after which time it will be worthless. The project is estimated to generate $99,000 in annual sales with costs of $34,300. The tax rate = 22% and the required return is 14.8%. What is the net present value of this project and its IRR%