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XYZ is considering a project that would last for 3 years and have a cost of capital of 19.80 percent. The relevant level of net

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XYZ is considering a project that would last for 3 years and have a cost of capital of 19.80 percent. The relevant level of net working capital for the project is expected to be $2,173.00 immediately (at year 0); $5,000.00 in 1 year; $14,800.00 in 2 years; and $0.00 in 3 years. Relevant expected revenue, costs, depreciation, and cash flows from capital spending in years 0, 1, 2, and 3 are presented in the following table. The tax rate is 50.70 percent. What is the net present value of this project?. Year 0 Year 1 Year 2 Year 3 Revenue $ 0.00 $10,800.00 $12,000.00 $11,000.00 Costs $ 0.00 $4,000.00 $3,550.00 $2,000.00 Depreciation $ 0.00 $2,010.00 $2,200.00 $1,700.00 Cash flows from capital spending $-6,500.00 $1,480.00 $1,910.00 $3,020.00

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