The machinery required for a three year project costs ( $ 20,000 ), belongs in a 15 CCA class, and will require a net working capital investment of ( $ 5,000 ) up front (net working capital is recovered at the end of the project) The project generates pre tax sales less cash costs of ( $ 15,500 ) in each of years 1 to 3 The fixed assets will be sold for a salvage value of ( $ 2,000 ) at the end of the project If the firm has a tax rate of 35 and a required return of 10, what is the project NPV

Question

The machinery required for a three year project costs   (   $ 20,000   ), belongs in a  15 CCA class, and will require a net working capital investment of   (   $ 5,000   ) up front (net working capital is recovered at the end of the project)  The project generates pre tax sales less cash costs of   (   $ 15,500   ) in each of years 1 to 3   The fixed assets will be sold for a salvage value of   (   $ 2,000   ) at the end of the project  If the firm has a tax rate of  35 and a required return of  10, what is the project NPV

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Question

The machinery required for a three year project costs ( $ 20,000 ), belongs in a 15 CCA class, and will require a net working

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