Javacity is considering new brewing equipment

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Reference no: EM132042932

JavaCity is considering new brewing equipment. The amount of initial investment will be $250 today and the equipment is expected to last for 5 years with no salvage value. The depreciable base is the entire amount of investment, and straight line depreciation will be used. Project inflows are expected to be $590 per year and project outflows are expected to be $340 per year, both starting in one year and continuing at the end of each year over the project life. JavaCity pays tax at the rate of 30%. What is the net present value of the project if the required rate of return is 8%.

Project NPV $____?____

Reference no: EM132042932

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