Expension project-requires initial fixed asset investment

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Reference no: EM131573538

Phone Home inc is considering a new 4 year expension project that requires an initial fixed asset investment of $3 million. Fixed asset willl be depreciated straight line to zero over its 4 year tax life after which time it will have a market value of $225,000.Project requires an initial investment in nwc of $330,000 all of which will be recovered at the end of the project. The project is estimated to generate $2,640,000 in annual sales with costs of $ 1,0560,000.Tax rate is 33 % and the required return for the project is 15%. What is the npv for this project ?

Please show how to use on a calulator if possible.

Reference no: EM131573538

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