Lakeside grapes is considering expanding

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Lakeside Grapes is considering expanding its wine-making operations. They would need new equipment that costs $310 thousand that would be depreciated on a straight-line basis to a zero balance over the 5-year life of the project. The estimated pre-tax salvage value is $60 thousand. The project requires $36 thousand initially for net working capital, all of which will be recouped at the end of the project. The projected operating cash flow is $153 thousand a year. What is the net present value of this project if the relevant discount rate is 17.9 percent and the tax rate is 33 percent? (Enter answer in thousands.)

Reference no: EM13528183

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