Develop an intial estimate of npv

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Reference no: EM131411688

PROJECT SCENARIO: Suppose you are analyzing a project with the following pro-forma parameters:

Initial Investment (P&E)

Initial Working Capital

Working Capital Recovery

$6.2 million

$785,000

100%

OCF 1

OCF 2 - 4

OCF 5

$1.1 million

$2.7 million

$750,000

Terminal Salvage Value

Flotation Cost %

Depreciation

$0

6%

S/L to Zero over 5 Years

Marginal Tax Rate

Required Return

Project Life

40%

12%

5

TASK ONE: Use the above pro-forma data to develop an intial estimate of npv. Comment in any way you feel is appropriate based upon your findings.

Reference no: EM131411688

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