Determining the project net present value

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A project has an initial requirement of $99,386 for equipment. The equipment will be depreciated to a zero book value over the 5-year life of the project. The investment in net working capital will be $15,963. All of the net working capital will be recouped at the end of the 5 years. The equipment will have an estimated salvage value of $13,181. The annual operating cash flow is $47,490. The cost of capital is 13 percent. What is the project's net present value if the tax rate is 25 percent?

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: EM131387894

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