Question
The Anchorage Corp. is considering a three-year project. Assume constsant depreciation (straight-line) with zero salvage value remaining after three years. Calculate the NPV to the
The Anchorage Corp. is considering a three-year project. Assume constsant depreciation (straight-line) with zero salvage value remaining after three years. Calculate the NPV to the nearest cent.
WACC 13.7%
Additional investment in fixed assets at t = 0 $75,000
Annual sales (constant for three years starting t = 1) $75,000
Operating costs (excl. depreciation) (also constant also 3 years $25,000
Tax rate 21.0%
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Fundamentals Of Financial Management
Authors: James Van Horne, John Wachowicz
13th Revised Edition
978-0273713630, 273713639
