What project net present value if tax rate twenty one cent

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Problem 1: A project has an initial requirement of $300,000 for fixed assets and $20,000 for net working capital. The fixed assets will be depreciated to a zero book value over the 3-year life of the project and have an estimated salvage value of $100,000. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $150,000 and the discount rate is 12 percent. What is the project's net present value if the tax rate is 21 percent?

Reference no: EM132762620

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