Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please explain on excel. please show formulas for excel Question 30 0/2 points A new project will cost $100,000. It will increase sales by 80,000
please explain on excel. please show formulas for excel
Question 30 0/2 points A new project will cost $100,000. It will increase sales by 80,000 units but will also increase annual fixed costs by $15,000. Selling price per unit is $8.50 and variable cost per unit is $7.50. The project will also require initial investment of $20,000 in net working capital. The project will last for three years, and depreciation will be straight-line to zero. Interest expense will be $5,000. Given that the required rate of return on this project is 16%, and the marginal corporate tax rate is 40%, what is the net present value of this project? $6.742.31 - $5,869.36 -57.699.25 $10,347.74 $5,176.83 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started