Calculating project cash flows straight line depreciation

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AmericanHealth Inc, a chain of gym facilities, is looking at a new type of exercise gear for all of its stores. The total amount of investment will be $250 today and the equipment is expected to last for 5 years with no salvage value. In calculating project cash flows straight line depreciation will be used. Annual cash inflows connected with the project are expected to be $560 at the end of each year for 5years and annual cash outflows connected with the project are expected to be $315 at the end of each year for 5 years. AmericanHealth pays tax at the rate of 30%. What is the net present value of the project if the required rate of return is 9%. Project NPV$: (To 4 decimal points)

Reference no: EM131337148

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