Compute the net present value of the project

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Reference no: EM132167443

Johnson Corporation is considering investing $510,000 in a project. The life of the project would be 4 years. The project would require additional working capital of $24,000, which would be released for use elsewhere at the end of the prject. The annual net cash inflows would be $162,000. The salvage value of the assets used in the project would be $41,000. The company uses a discount rate of 10%. (Ignore income taxes in this problem).

Required: Compute the net present value of the project.

Reference no: EM132167443

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