Fixed assets will be depreciated to zero book value

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A project has an initial requirement of $229,025 for new equipment and $9,004 for net working capital. The fixed assets will be depreciated to a zero book value over the 3-year life of the project and have an estimated salvage value of $82,095. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $78,895 and the cost of capital is 9% What is the project's NPV if the tax rate is 37%?

Reference no: EM131054663

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