Computing the project npv

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A project has an initial requirement of $212,438 for new equipment and $11,764 for net working capital. The installation costs are expected to be $10,915. The fixed assets will be depreciated to a zero book value over the 4-year life of the project and have an estimated salvage value of $85,134. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $85,279 and the cost of capital is 5% What is the project's NPV if the tax rate is 26%?

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Reference no: EM132367018

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