What is the net present value of this project if the


Lakeside Winery is considering expanding its winemaking operations. The expansion will require new equipment costing $708,000 that would be depreciated on a straight-line basis to a zero balance over the four-year life of the project. The equipment can be sold for $220,000 after the four years. The project requires $46,000 initially for net working capital, all of which will be recouped at the end of the project. The projected operating cash flow is $211,500 a year. What is the net present value of this project if the relevant discount rate is 13 percent and the tax rate is 34 percent?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What is the net present value of this project if the
Reference No:- TGS02814752

Expected delivery within 24 Hours