The installation costs to get the new equipment

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A project has an initial requirement of $205,484 for new equipment and $9,421 for net working capital. The installation costs to get the new equipment in working condition are 11,833. The fixed assets will be depreciated to a zero book value over the 4-year life of the project and have an estimated salvage value of $101,915. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $80,574 and the cost of capital is 19% What is the project's NPV if the tax rate is 26%?

Reference no: EM131054554

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