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A project has an initial requirement of $195,422 for new equipment and $14,626 for net working...

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Finance

A project has an initial requirement of $195,422 for newequipment and $14,626 for net working capital. The installationcosts to get the new equipment in working condition are 2,873. Thefixed assets will be depreciated to a zero book value over the5-year life of the project and have an estimated salvage value of$115,708. All of the net working capital will be recouped at theend of the project. The annual operating cash flow is $76,206 andthe cost of capital is 13% What is the project's NPV if the taxrate is 34%?

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