Given the following information and assuming straight-line d…
Given the following information and assuming straight-line depreciation to zero, what is the NPV for this project? The initial investment in fixed assets is $30,000, the initial investment in net working capital is $5,000, the life of the project is expected to be 4 years, and the OCF per year is $9,000. The equipment can be sold for $2,000 at the end of the project. Assume a tax rate of 20%, and a discount rate of 8%.
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