Answer Happy

a depreciated straight-line to a zero book value over the 7-y car life of the project. The equipment can be scraped at the PJK is considering a project that will require the purchase of CS990,000 in new equipment. The equipment will aber end of the project for 5 percent of its original cost. Annual sales from this project are estimated at CS420,000. Net working capital equivalent to 20 percent of annual sales will be required (at the beginning) to support the project. All of the net working capital will be recouped. The required return is 16 percent and the tax rate is 30 percent. a) What is the total initial investment? b) What is the amount of the after-tax salvage value of the equipment at the end of the project? c) What is the amount of net working capital recovery at the termination of the project?