T a W Question 73 What is the project's NPV? A B $28,941 $19,125 C) $33,231 D E $55,254 $70,263 4

What is the project's NPV? $19,125 $28,941 $33,231 $55.254 $70,263 What is the project's NPV? $19,125 $28,941 $33,231 $55.254 $70,263 For the next 8 questions suppose the following data holds: IBC, Inc. is considering the purchase of a $320,000 computer that has an economic life of 5 years. The cornputer will be depreciated acoording to 5 -year MACRS schedule (20%,32%,10.2%,11.52%,11.52%, and 5.76%). The markes value of the computer wil be $50,000 in 5 years. The use of computer will save annual costs of $120:000 for the nex five years. For simplicity these cost savings are assumed to occur at the end of these years. As a result of this project, the ne: working capital ygl increase by $60,000 immedlately, and it will be recovered at the end of year 5 . The firm's tax rate is 20% and its cost of capital is 12%. What is the incial Investment requirement (t=0)? 5240,000 5260.000 5280,000 5320.000