A project costs $65,000, will be depreciated straight-line to zero over its 4 year life, and will require a net working capital investment of $5,000 up-front. The firm has a tax rate of 35% and a required return of 15%. The project generates an annual operating cash flow (OCF) of $22,000. What is the project's NPV? $-2.190.48 $-26,315.04 $+5.089.72 $-4,331.71

A project costs $65,000, will be depreciated straight-line to zero over its 4 year life, and will require a net working capital investment of $5,000 up-front. The firm has a tax rate of 35% and a required return of 15%. The project generates an annual operating cash flow (OCF) of $22,000. What is the project's NPV? $-2.190.48 $-26,315.04 $+5.089.72 $-4,331.71

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Description: A project costs $65,000, will be depreciated straight-line to zero over its 4 year life, and willrequire a net working capital investment of $5,000 up-front. The firm has a tax rate of 35%and a required return of 15%. The project generates an annual

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6PA: There are two projects under consideration by the Rainbow factory. Each of the projects will require...

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