Answered step by step
Verified Expert Solution
Question
1 Approved Answer
pls help Delia Landscaping is considering a new 4 -year project. The necessary fixed assets will cost $203,000 and be depreciated on a 3-year MACRS
pls help
Delia Landscaping is considering a new 4 -year project. The necessary fixed assets will cost $203,000 and be depreciated on a 3-year MACRS and have no salvage value. The MACRS percentages each year are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. The project will have annual sales of $140,000, variable costs of $37,900, and fixed costs of $13,050. The project will also require net working capital of $3,650 that will be returned at the end of the project. The company has a tax rate of 21 percent and the project's required return is 11 percent. What is the net present value of this project? Multiple Choice $24,498 $26,225 $48,887 Multiple Choice $24,498 $26,225 $48,887 $29,198 $22,456 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