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% a. $4,634.80 b. -$25,959.65 c. $15,134.80 d. -$36,459.65​

Answer 1

d) -$ 36,459.65 is the correct answer

Answer 2

d) -$ 36,459.65

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