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You are considering a project that requires a $300 investment in equipment with the following attributes: $50 per year indefinitely of incremental cash flows; a

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You are considering a project that requires a $300 investment in equipment with the following attributes: $50 per year indefinitely of incremental cash flows; a WACC of 10%, a 5yr depreciation schedule; a salvage value of $60 for the equipment after 7 years; a tax rate of 20%; cannibalization of existing product sales of $80 in present value; foregone product sales of $60 in present value. What is the project's NPV? positive, but below the cost of capital positive, and above the cost of capital zero negative

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