The operating cash flow of the project

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Reference no: EM1388215

Peralta, Inc. is considering a project that requires $20,000 in net working capital and $150,000 in fixed assets, which will be depreciated straight-line to zero over the three year life of the project. The fixed assets have a salvage value of $20,000 at the end of the project. The operating cash flow of the project is $70,000 per year. The tax rate is 35% and the required rate of return is 12%. What is the NPV of this project?

Answer: $21,617

Trying to correctly input it in calculator..

Reference no: EM1388215

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