Respuesta :
Answer:
$128,787.07
Explanation:
Initial investment = $2.32 million = $2,320,000
Depreciation = investment ÷ Useful life
= $2,320,000 ÷ 3
= $773,333.33
Operating cash flows from year 1 to year 3
= [ ( Sales - Costs - Depreciation ) × (1 - tax) ] + Depreciation
= [ ( $1,735,000 - $650,000 - $773,333.33 ) × (1 - 0.21) ] + $773,333.33
= 1019549.99 ≈ 1,019,550
Thus,
NPV = Present value of cash inflows - Present value of cash outflows
Also,
Initial investment = [tex]\frac{1,019,550}{(1 + 0.12)^1} + \frac{1,019,550}{(1 + 0.12)^2} + \frac{1,019,550}{(1 + 0.12)^3}[/tex] - 2,320,000
or
NPV = $128,787.07
Answer:
The project's NPV is
Explanation:
Given
The Initial fixed asset[tex]= \$2,320,000[/tex]
Step 1:
To calculate Depreciation:
Depreciation = investment ÷ Useful life
[tex]=\frac{\$2,320,000}{3}[/tex]
[tex]=\$773,333.33[/tex]
Step 2:
To calculate Operating cash flows from year 1 to year 3
[tex]= [ ( Sales - Costs - Depreciation ) \times (1 - tax) ] + Depreciation[/tex]
[tex]= [ ( \$1,735,000 - \$650,000 - \$773,333.33 ) \times (1 - 0.21) ] + \$773,333.33[/tex]
[tex]= \$1019549.99[/tex]
Therefore,
NPV = Present value of cash inflows - Present value of cash outflows
NPV[tex]= \$128,787.07[/tex]
To learn more, refer:
- https://brainly.com/question/18848923
