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XYZ is considering a project that would last for 3 years and have a cost of capital of 1 9 . 6 0 percent. The
XYZ is considering a project that would last for years and have a cost of capital of percent. The relevant level of net working capital for the project is expected to be $ immediately at year ; $ in year; $ in years; and $ in years. Relevant expected revenue, costs, depreciation, and cash flows from capital spending in years and are presented in the following table. The tax rate is percent. What is the net present value of this project?.
Year Year Year Year
Revenue $ $ $ $
Costs $ $ $ $
Depreciation $ $ $ $
Cash flows from capital spending $ $ $ $
a $plus or minus $
b $plus or minus $
c $plus or minus $
d $plus or minus $
e None of the above is within $ of the correct answer
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