XYZ Corp. has a project that sells 14,500 units of product X a year at $5.89 per unit. Its capital equipment costs $26,320 and is depreciated straight-line over 7 years with no salvage value. Its variable costs are 10.30% of sales and fixed costs are $22,500 per year. The required return is 12.90% and the tax rate is 35%. Assume there is no impact on working capital. What is the NPV of the project?

Public Answer

GTQZIC The First Answerer