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    Net present value of a project

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    What is the net present value of a project with the following:

    -initial cost of fixed assets is $90,000 which will be worthless at the end of the project
    -will generate cash flows of $40,000 per year for 5 years
    -additional net working capital of $5,000 is required over the life of the project
    -required rate of return is 15%

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    What is the net present value of a project with the following: 

    -initial cost of fixed assets is $90,000 which will be worthless at the end of the ...

    Solution Summary

    The solution helps in computing Net present value of a project.

    $2.49

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