What is the projects npv and irr

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Reference no: EM132025336

Question

Temple Corp. is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would be depreciated by the straight-line method over its 3-year life, and would have a zero salvage value. No new working capital would be required. Revenues and other operating costs are expected to be constant over the project's 3-year life.

Risk-adjusted WACC 10.0%

Net investment cost (depreciable basis) $65,000

Straight-line depreciation rate 33.3333%

Sales revenues, each year $65,500

Operating costs (excluding depreciation.), each year $25,000

Tax rate 35.0%

What are the net cash flows in Years 0, 1, 2, and 3?

What is the project's NPV and IRR?

please with IRR

Reference no: EM132025336

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