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What is the NPV of an investment with the following information . . . Initial investment at time t=0 is $3,200,000 Life of project is
What is the NPV of an investment with the following information . . . Initial investment at time t=0 is $3,200,000 Life of project is 8 years Initial investment depreciated to $0 via straight-line over entire life NWC investment required = $30,000, recovered at end of project. Expected market salvage value of investment assets = $90,000 received at end of project. Starting 1-year from today, and remaining constant over project life: Incremental sales as a result of investment = $2,000,000 / year Incremental expenses as a result of investment = $1,300,000 / year firm' tax rate = 28% required return on investment = 16% o o
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