You want to invest a project which has a annual sale of 140,000 cartons of machine screws, with the price of $16 per uni

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You Want To Invest A Project Which Has A Annual Sale Of 140 000 Cartons Of Machine Screws With The Price Of 16 Per Uni 1 (86.6 KiB) Viewed 16 times

You want to invest a project which has a annual sale of 140,000 cartons of machine screws, with the price of $16 per unit over the next 5 years. It will cost $1,800,000 to install the equipment; you will depreciate this cost straight-line to zero over the project's life. After 5 years, the equipment can be salvaged for $150,000. Your fixed costs is $265,000 per year, and variable costs should be $8.50 per carton. You also need an initial investment in net working capital of $130,000. The tax rate is 35 percent and you require a 14 percent return on your investment.(using excel) What is the NPV of this project?