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You are considering the following project. What is the NPV of the project? WACC of the project: 0.10 Revenue growth rate: 0.05 Tax rate: 0.40

You are considering the following project. What is the NPV of the project?

WACC of the project: 0.10

Revenue growth rate: 0.05

Tax rate: 0.40

Revenue for year 1: 13,000

Fixed costs for year 1: 3,000

variable costs (% of revenue): 0.30

project life: 3 years

Economic life of equipment: 3 years

Cost of equipment: 20,000

Salvage value of equipment: 4,000

Initial investment in net working capital: 2,000

Answer is -2675.52, but I need to understand how to get there.

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