Question
Your boss Is considering a 4-year investment project. If the project is accepted, it would require an immediate spending of $614 to buy all necessary
Your boss Is considering a 4-year investment project. If the project is accepted, it would require an immediate spending of $614 to buy all necessary production equipment. This equipment would be sold at the end of the project and bring your company estimated $119 on sale proceeds after taxes (after tax salvage value). Your boss's consulting team estimated that the annual after-tax profits (or operating cashflows) would equal $160. The team also recommends immediately setting aside $40 in cash to cover any unforeseen expenses. The required annual rate of returns is 10.5%. Calculate the Net Present Value of this proposed investment project. ***Please show how I can solve on excel. I am confused on the formulas.
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