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You are evaluating a capital budgeting project. The appropriate discount rate for the project is 12.5%. The initial cost of the project will be $220,000.
- You are evaluating a capital budgeting project. The appropriate discount rate for the project is 12.5%. The initial cost of the project will be $220,000. The project is expected to produce positive after tax operating cash flows of $70,000 per year for 4 years. Winding up of the project will produce an after tax salvage value of $15,000 in the fourth year. What is the Net Present Value of the project?
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