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Your company is considering a capital investment of $120 million. The project will produce operating cash flows of $30 million annually for 6 years. It
Your company is considering a capital investment of $120 million. The project will produce operating cash flows of $30 million annually for 6 years. It will require $25 million of net working capital, all of which will be recovered at the end of the project. At termination, the asset will be sold for $35 million, $20 million above its adjusted tax basis. The company has a marginal tax rate of 35%. What is the projects NPV using a discount rate of 12%?
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