Partida inc has provided the following data concerning a

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Reference no: EM13484137 , Length: 10

Partida Inc. has provided the following data concerning a proposed investment project:

Initial investment

$861,000

Annual cash receipts

$603,000

Life of the project

5 years

Annual cash expenses

$332,000

Salvage value

$129,000

The company's tax rate is 30%. For tax purposes, the entire initial investment without any reduction for salvage value will be depreciated over 3 years. The company uses a discount rate of 11%.

Required:

Compute the net present value of the project.

Reference no: EM13484137

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