Bertha Co. is considering a new project that will generate OCFs of 646,809 over the 4 year life of the project. The project will require $1,413,871 of new equipment that can be sold for 20% of initial cost (consider this an after-tax figure) and will require an investment in net working capital of $78,530. If Bertha has a required return of 11, what is the npv for this project?
(Round Your Answer to the nearest dollar (Ex 123,456 instead of 123.455.68)
=-1413871+646809/11%*(1-1/1.11^4)-78530+78530/1.11^4+1413871*20%/1.11^4
=752291.0617
Bertha Co. is considering a new project that will generate OCFs of 646,809 over the 4...
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