Question

Calculate the NPV of Project A using the below information:
Project period: 5 Years
Amount paid for research: $10,500
Cost of equipment: $150,000 (Depreciation method: Straight line for 5 years)
Annual savings from this project A: $55,500
Cost of Capital: 12%
Tax rate: 38%
h
a. $4,634.80
b. -$25,959.65
c. $15,134.80
d. -$36,459.65​

Answer 1

Answer:

B option is right

-$25,959.65

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