Calculating after-tax salvage value

Reference no: EM1330966

A project will produce an operating cash flow of $14,600 a year for 8 years. The initial fixed asset investment in the project will be $48,900. The net after-tax salvage value is estimated at $11,000 and will be received during the last year of the project's life. What is the NPV of the project if the required rate of return is 12%?

Reference no: EM1330966

Questions Cloud

Question on after-tax cash flows : Preston Corporation is evaluating its potential investment in a $240,000 piece of equipment with a 3-year life and no salvage value. What is the net present value of the investment?

Explain strategically use the current employee base : Based on the information provided, what would you tell the owners with regards to how to best handle the additional growth and Write a statement describing how you would recommend to strategically use the current employee base,

What do you think large corporations aboutmicrosoft-walmart : What do you think large corporations like Microsoft and WalMart should be regulated more or less than they are.

Explain the sum of the inverses of all positive integers : though , when we compute the sum in Java's floating point arithmetic the largest value we get is 15.403683, regardless of how many terms we add. Explain the possible reasons for this anomaly.

Calculating after-tax salvage value : A project will produce an operating cash flow of $14,600 a year for 8 years. The initial fixed asset investment in the project will be $48,900.

Definition of employment at will : What does employment-at-will mean? In legal terms, why did Milton lose her case?

Examples of subculture in manufacturing type of organization : Can you give some examples of a subculture that you might find in a manufacturing type of organization?

Technological paradigm shifts happen all the time : Technological paradigm shifts happen all the time. One example is the telecommunications industries in developing countries, where consumers are choosing to adopt wireless technology before wired technology.

Explain principles of microeconomics apply to other country : Explain the principles of microeconomics apply to other country. Describe any differences or special situations.

User Account

All Pages