Posted by Anonymous on .
Temple Corp. is considering a new project \vhose data are shown below. 'rhe equipment that would be used
has a 3-year tax life, would be depreciated by the straight-line method over its 3-year life, and would have a
zero salvage value. No new working capital would be required. Revenues and other operating costs are
expected to be constant over the project's 3-year life. What is the project's NPV?
Net investment cost (depreciable basis)
Straight-line depree. rate
Sales revenues, each year
Operating costs (exc!. deprec.), each year