The annual operating cash flow

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A project has an initial requirement of $212,574 for new equipment and $8,320 for net working capital. The installation costs are expected to be $19,483. The fixed assets will be depreciated to a zero book value over the 4-year life of the project and have an estimated salvage value of $116,116. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $64,250 and the cost of capital is 5% What is the project's NPV if the tax rate is 29%?

Reference no: EM132009146

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