ABC, Inc. is considering a project that requires €21,000 in net working capital and €121,000 in fixed assets, which will be depreciated straight-line to zero over the three-year life of the project. The fixed assets have a salvage value of €28,500. The operating cash flow of the project is €61,300 per year. The tax rate is 35% and the required rate of return is 16%. What is the NPV of this project? €11,887 €14,226 €20,995 €24,289 None of the above.
ABC, Inc. is considering a project that requires €21,000 in net working capital and €121,000 in fixed assets, which will be depreciated straight-line to zero over the three-year life of the project. The fixed assets have a salvage value of €28,500. The operating cash flow of the project is €61,300 per year. The tax rate is 35% and the required rate of return is 16%. What is the NPV of this project? €11,887 €14,226 €20,995 €24,289 None of the above.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
100%
ABC, Inc. is considering a project that requires €21,000 in net working capital and €121,000 in fixed assets, which will be
is 16%. What is the
-
€11,887
-
€14,226
-
€20,995
-
€24,289
-
None of the above.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education