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Violet Sky Shipping is considering a project that would last for 2 years and have a cost of capital of 5.22 percent. The relevant level

Violet Sky Shipping is considering a project that would last for 2 years and have a cost of capital of 5.22 percent. The relevant level of net working capital for the project is expected to be 24,000 dollars immediately (at year 0); 8,000 dollars in 1 year; and 0 dollars in 2 years. Relevant expected revenue, costs, depreciation, and cash flows from capital spending in years 0, 1, and 2 are presented in the following table (in dollars). The tax rate is 50 percent. What is the net present value of this project? Year 0 Year 1 Year 2 Revenue $0 153,000 153,000 Costs $0 58,000 58,000 Depreciation $0 41,000 41,000 Cash flows from capital spending -88,000 0 21,000 Number

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