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This company is planning to invest in a project called Ellayiah. The management accounting department received the following information Caper $65,000 Project period Syears Revenue

This company is planning to invest in a project called Ellayiah. The management accounting department received the following information Caper $65,000 Project period Syears Revenue $19000 Operating expenses 10,000 Salvage Value 15,000 Tax Rate 25% Discount Rate 7.5% Sale of asset @ end of project $20,000 Net working Capital $10,700 The capital expenditure is depreciated using straight line method over the project and will have a residual value of $11,000. The company will have to rent a building for $4000

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