What is the net present value of the project if the required

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Reference no: EM131337076

HealthWorks Inc, a chain of workout facilities, is looking at a new type of exercise equipment for all of its stores. The total amount of investment (an immediate outflow) will be $300 today and the equipment is expected to last for 5 years with no salvage value. In calculating project cash flows straight line depreciation will be used. Annual cash inflows connected with the project are expected to be $540 at the end of each year for 5 years and annual cash outflows connected with the project are expected to be $340 at the end of each year for 5 years. HealthWorks pays tax at the rate of 30%. What is the net present value of the project if the required rate of return is 6%. Project NPV $ Place your answer in dollars and cents. Work your analysis using at least 4 decimal places of accuracy. Notes on formatting: Do NOT include a dollar sign or a comma in your NPV. For example, an answer of one hundred twenty dollars and fifteen cents would be placed as 120.15. If applicable, indicate negative amounts with a minus sign in front of the number.

Reference no: EM131337076

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