November 29, 2015

Homework Help: Finance

Posted by Shelly on Thursday, April 22, 2010 at 8:08am.

Wheel Industries is considering a three year expansion project.

The project requires an initial investment of $1.5 million. The project will use straight line depreciation method. The project has no salvage value. It is estimated that the project will generate additional revenues of $1.2 million and has costs of $600,000.

The tax rate is 35%. Calculate the cash flows for the project. If the discount rate is 6% calculate the NPV of the project.

Answer this Question

First Name:
School Subject:

Related Questions

More Related Questions