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A project has an initial requirement of $162,236 for new equipment and $10,615 for net working...

A project has an initial requirement of $162,236 for new equipment and $10,615 for net working capital. The installation costs are expected to be $17,283. 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 $106,526. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $92,121 and the cost of capital is 6% What is the project's NPV if the tax rate is 37%?

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Answer #1

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Project's NPV = $190,641.57

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