Year 0Year 1Year 2Year 3Revenues800,000800,000800,…
Year 0Year 1Year 2Year 3Revenues800,000800,000800,000Cost of Goods Sold-300,000-300,000-300,000Gross Profit500,000500,000500,000Selling, General and Admin-110,000-110,000-110,000Depreciation-180,000-180,000-180,000EBIT210,000210,000210,000Income tax (20%)-42,000-42,000-42,000Incremental Earnings168,000168,000168,000Capital Purchases-600,000Changes to NWC-12,000-12,000-12,000Cromwell Industries is considering a new project which will have costs, revenues, etc. as shown by the data above. If the cost of capital is 8.1%, what is the net present value (NPV) of this project?
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