Calculate net present value of pelican industries project

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Question - Pelican Industries sells playground equipment and has an after tax cost of capital of 11.6 percent.

Buck's Construction builds and sells slides and monkey bars for playgrounds and has an after tax cost of capital of 10.3 percent. Pelican is considering building its own water features and fountains. The up-front cash expense for this project would be $80,000. The estimated net cash inflows are $17,000 per year for seven years.

Calculate the net present value of the Pelican Industries project?

Reference no: EM132173262

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