Net Present Value for the Project Assignment | Homework For You
June 3rd, 2020
Sampson Electric is considering a three-year project that requires an initial fixed asset investment of $3,000,000. The fixed asset will be depreciated straight-line to zero over five years. At the end of the three-year project, the fixed asset will have a before-tax market value of $581,000. The project also requires an initial investment in net working capital of $330,000, all of which will be recovered at the end of the project. 
The project will generate $2,640,000 in annual sales, with costs of $1,086,000. The tax rate is 20 percent and the required return for the project is 19 percent. What is the net present value for the project? Round with no decimals, no commas, and put a dash (-) before the number if negative. Answer: Get Finance homework help today
The project will generate $2,640,000 in annual sales, with costs of $1,086,000. The tax rate is 20 percent and the required return for the project is 19 percent. What is the net present value for the project? Round with no decimals, no commas, and put a dash (-) before the number if negative. Answer: Get Finance homework help today
