A project costs $75,000, will be depreciated straight-line t…
A project costs $75,000, will be depreciated straight-line to zero over its 3 year life, and will require a net working capital investment of $6,000 up-front. The project generates an annual operating cash flow (OCF) of $30,000. The fixed assets will be sold for $7,000 at the end of the project. If the firm has a tax rate of 35% and a required return of 8%, what is the project’s NPV?
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