Calculate the npv of a proposed project

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Reference no: EM131307858

Given the following information, calculate the NPV of a proposed project: cost=4000 estimated lfe 3 years; initial decrease in accounts receivable=1000 which must be restored at the end of the project's life; estimated salvage value 1000; net income before taxes and depreciateion= 2000 per year; method of depreciation=macrs; tax rate 40 percent; required rate of return= 18 percent

a. 544

b. 1137

c. 804

d. 137

E. -151

Reference no: EM131307858

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