Question
Taggart Corp has an expanding project, and as a result expected additional operating cash flow of $26,000 a year for 4 years. This expansion requires
Taggart Corp has an expanding project, and as a result expected additional operating cash flow of $26,000 a year for 4 years. This expansion requires $39,000 in new fixed assets. These assets will be worthless at the end of the project. The project also requires an additional $3,000 of net working capital at the start of the project and reminas $3,000 throughout the life of the project, Sol experts to recover the amount at the end of the project. What is the NPV of this expansion project at 16% require rate of return?
a. 18,477
b.21,033
c. 28,289
d. 34,410
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