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What is the depreciation expense in year

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Your company is considering an investment that would involve the following initial outlays: cost of equipment: $196673, installation: $40914, and change in NOWC: $20286. The equipment is classified to be depreciated according to the MACRS 3-year table, with the following depreciation schedule: year 1 = 33%, year 2 = 45%, year 3 = 15%, year 4 = 7%. What is the depreciation expense in year 2?

You have just performed a scenario analysis on a project, with the following results:

Best Case: with a 35% probability, you get an NPV of $67

Base Case: with a 55% probability, you get an NPV of $27

Worst Case: with a 10% probability, you get an NPV of $-13 (yes, that's negative)

What is this projects Expected NPV?

Reference no: EM131536989

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