What is the project npv if the tax rate is given

Reference no: EM132059547

Question: A project has an initial requirement of $198,955 for new equipment and $10,880 for net working capital. The installation costs are expected to be $18,020. The fixed assets will be depreciated to a zero book value over the 4-year life of the project and have an estimated salvage value of $119,581. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $75,381 and the cost of capital is 6% What is the project's NPV if the tax rate is 37%?

Reference no: EM132059547

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