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What is the cash flow from assets for each year of project

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Reference no: EM132019395

Longs inc clothing line has proposed a new project that will have an installation cost og $240,000 this cost will be depricted in a straigt line to zero oveer the projects fout year life, and the equipment has no salvage value. the equipment will save the company 99,000 per year in pretax operating costs and the equipment requires an intial investment in Net working capital of $10,000 which will be recouperated at the end. the tax rate is 21%. What is the cash flow from assets for each year of the project years 0-6? what is the npv of the project if the cost of capital is 15%?

Reference no: EM132019395

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