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Year 0 o Year 1 Year 2 Year 3 Revenue 700000 700000 Cost of Goods Sold 700000 -320000 380000 -320000 -320000 Gross Profit 380000 380000
Year 0 o Year 1 Year 2 Year 3 Revenue 700000 700000 Cost of Goods Sold 700000 -320000 380000 -320000 -320000 Gross Profit 380000 380000 -100000 -100000 Selling, General and Admin Depreciation -190000 -190000 90000 -100000 - 190000 90000 EBIT 90000 -31500 -31500 -31500 Income tax (35%) Incremental Earnings 58500 58500 58500 -600,000 Capital Purchaes Change to NWC -12,000 -12,000 -12,000 Cromwell Industries is considering a new project which will have costs, revenues, etc. as shown by the data above. If the cost of capital is 7.6%, what is the net present value (NPV) of this project? O A. $83,830 O B. $76,209 O C. - $68,588 OD. - $72,399
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