New three-year expansion project

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Reference no: EM131923610

Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $1,950,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $2,145,000 in annual sales, with costs of $1,205,000. If the tax is 35% and required return on project is 14%

What is the NPV of the project?

Reference no: EM131923610

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