Expected to be constant over the project three-year life

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Reference no: EM131563586

Temple Corp. is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would be depreciated by the straight-line method over its 3-year life, and would have a zero salvage value. No change in net operating working capital would be required. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's NPV? Do not round the intermediate calculations and round the final answer to the nearest whole number. Risk-adjusted WACC 10.0% Net investment cost (depreciable basis) $65,000 Straight-line depr. rate 33.3333% Sales revenues, each year $71,000 Annual operating costs (excl. depr.) $25,000 Tax rate 35.0% a. $28,215 b. $30,190 c. $25,393 d. $25,958 e. $23,136

Reference no: EM131563586

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