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Calculate the project net present value

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Assuming a capital expenditure project that forecasted revenues equal to $ 32,000 per year, cash expenses are estimated to be 29,000 per year. The cost of the project equipment is 23,000, and the equipment's salvage value at the end of the project id 9,000. The equipment's 23,000 cost will be depreciated on a straight-line basis to $0 0ver a 10 year estimated economic life. Assumes that the project requires an initial $7,000 working capital investment. The company's marginal tax rate is 30%. Calculate the project net present value a 12% discount rate.

Reference no: EM131189937

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