Question
Your boss is considering a 5-year investment project. If the project is accepted, it would require an immediate spending of $767 to buy all necessary
Your boss is considering a 5-year investment project. If the project is accepted, it would require an immediate spending of $767 to buy all necessary production equipment. This equipment would be sold at the end of the project and bring your company estimated $181 in sale proceeds after taxes (or after-tax salvage value). The team recommends immediately setting aside $46 in cash to cover any unforeseen expenses. Your boss's consulting team also estimated that the annual after-tax profits (or operating cash flows) would equal $168. The required annual rate of return is 9.8%. What is the Net Present Value of this proposed investment project? If your answer is negative, don't forget the minus sign!
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