Net present value of the project given required return

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Reference no: EM131343251

Project A will produce operating cash flows of $50,000 a year for five years. The project requires $150,000 of new equipment that will be depreciated straight-line to a zero book value over five years. The project will result in an immediate decrease of $10,000 in in net working capital. At the end of the project, net working capital will return to the normal level and the equipment will be sold for $30,000, before taxes. What is the net present value of the project given a required return of 15 percent?

Reference no: EM131343251

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