What is project net present value

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A project has an initial requirement of $87,290 for equipment. The equipment will be depreciated to a zero book value over the 5-year life of the project. The investment in net working capital will be $17,645. All of the net working capital will be recouped at the end of the 5 years. The equipment will have an estimated salvage value of $18,253. The annual operating cash flow is $41,591. The cost of capital is 8 percent. What is the project’s net present value if the tax rate is 38 percent?

 

Reference no: EM132022643

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