Given the following information and assuming a 20% CCA class, what is the NPV for this project? Initial investment in fixed assets = $800,000; initial investment in net working capital = $200,000; life = four years; after-tax cost savings = $250,000 per year, salvage value = $30,000; tax rate -35%; discount rate - 16%. Multiple Choice O O OO O $105.967 -$95.101 -$31732 $147,261 $87,098

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 1BE: Average rate of return Determine the average rate of return for a project that is estimated to yield...
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Given the following information and assuming a 20% CCA class, what is the NPV for this project? Initial Investment in fixed assets = $800,000; Initial Investment in net working capital = $200,000; life = four years; after-tax cost savings = $250,000 per year; salvage value = $30,000; tax
rate = 35%; discount rate = 16%.
Multiple Choice
O
O
O
O
$105,967
-$95,101
-$31,732
-$147,261
$87,098
Transcribed Image Text:Given the following information and assuming a 20% CCA class, what is the NPV for this project? Initial Investment in fixed assets = $800,000; Initial Investment in net working capital = $200,000; life = four years; after-tax cost savings = $250,000 per year; salvage value = $30,000; tax rate = 35%; discount rate = 16%. Multiple Choice O O O O $105,967 -$95,101 -$31,732 -$147,261 $87,098
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