Project npv-temple corp

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1.Temple Corp. is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would be depreciated by the straight-line method over its 3-year life, and would have a zero salvage value. No change in net operating working capital would be required. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's NPV? Do not round the intermediate calculations and round the final answer to the nearest whole number.

Risk-adjusted WACC10.0%
Net investment cost (depreciable basis)$65,000
Straight-line depr. rate33.3333%
Sales revenues, each year$63,000
Annual operating costs (excl. depr.)$25,000
Tax rate35.0%

2. Suppose that on your 21st birthday you are given a $1,000,000 trust fund. If you can earn 4% in annual compound interest, how much money can you withdraw each year to ensure that if there is money in the account forever?

Reference no: EM131763561

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