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PLEASE SHOW CALCULATOR INPUTS Reynolds Metals is considering a project with a life of 4 years that will produce annual operating cash flows of $57,000.

PLEASE SHOW CALCULATOR INPUTS

Reynolds Metals is considering a project with a life of 4 years that will produce annual operating cash flows of $57,000. During the life of the project, inventory will be lowered by $28,000, accounts receivable will increase by $15,000 and accounts payable will increase by $6,000. The project requires the purchase of equipment at an initial cost of $104,000 that will be depreciated straightline to a zero book value over the life of the project. Ignore bonus depreciation The equipment will be salvaged at the end of the project creating an aftertax cash inflow of $22,000. At the end of the project, net working capital will return to its normal level. What is the NPV of this project given a required return of 16%?

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