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The worksheet below presents some information about a project you are asked to evaluate. The project has a two - year economic life. It entails

The worksheet below presents some information about a project you are asked to evaluate. The project has a two-year economic life. It entails an initial investment of $100 in equipment, all of which will be depreciated over year 1 and year 2. The project is currently using a straight-line depreciation schedule.
\table[[,Year 0,Year 1,Year 2],[Capital investment,100,],[Working capital,0,20,5],[,],[After-tax profits,0,10,20],[Depreciation,,,],[Changes in working capital,,,],[Investment in fixed assets,,,],[Cash flow,,,],[PV(cash flow),,,]]
Corporate tax rate is 40%. The project's opportunity cost of capital is 10%.
Compute project NPV using the above worksheet.
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