Temporary housing facility to the nearest dollar

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THSI estimates that a project will initially cost $5.23 million to setup and will generate $20 million in revenues during its first and only year in operation (paid in one year). Operating expenses are expected to total $12 million during this year and depreciation expense will be another $3 million. THSI will require no working capital for this investment. THSI's marginal tax rate is 35%. Assume that THSI's cost of capital is 11.4% p.a.

What is the NPV of the temporary housing facility to the nearest dollar?

Reference no: EM132124447

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