The fixed asset will be depreciated straight-line to zero

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Summer Tyme, Inc., is considering a new 4-year expansion project that requires an initial fixed asset investment of $4.968 million. The fixed asset will be depreciated straight-line to zero over its 4-year tax life, after which time it will be worthless. The project is estimated to generate $4,416,000 in annual sales, with costs of $1,766,400. If the tax rate is 33 percent and the required return on the project is 9 percent, the NPV for this project is $. (Do not include the dollar sign ($). Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16))

Reference no: EM131541416

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