What is the project net present value

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A project has an initial requirement of $61,464 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 $10,062. 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 $12,655. The annual operating cash flow is $55,946. The cost of capital is 12 percent. What is the project’s net present value if the tax rate is 28 percent?

Reference no: EM131958916

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