What is the npv of project

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Your company is considering a 4-year expansion project that requires an initial fixed asset investment of $157,000. The fixed asset will be depreciated straight-line to zero over its 4-year life. The project is estimated to generate $150,000 in annual sales, with costs of $52,000. The project requires an initial investment in net working capital of $15,000, and the fixed asset will be sold for $13,000 at the end of the project. The tax rate is 25%, and the required return is 11%. What is the NPV of this project?

Round your answer to the nearest dollar, for example 10789.

Reference no: EM132050583

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