Solution-Explain net present value at the required rate of

Explain net present value at the required rate of return

Reference no: EM133001161

Initial fixed asset cost of $2.168 million which will be depreciated straight-line to a zero book value over the 10-year life of the project. At the end of the project the equipment will be sold for an estimated $495,000. The project will not directly produce any sales but will reduce operating costs by $634,000 a year. The tax rate is 30 percent. The project will require $128,000 of net working capital which will be recouped when the project ends. What is the net present value at the required rate of return of 15 percent?

Reference no: EM133001161

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Explain net present value at the required rate of return

Reference no: EM133001161

Reference no: EM133001161

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