You purchase equipment fo

You purchase equipment fo

You purchase equipment for $100,000, and it costs $20,000 to have it delivered and installed. The equipment will be depreciated straight-line to a zero book value over 5 years. You can sell the equipment for $15,000 when you are done with it in 5 years. The company?s marginal tax rate is 40%. What is the depreciation expense each year and the after-tax salvage in year 5??Assume that you project the net income of the next five years is $15000, 25000, 37000, 16000, 22000 respectively. The project require an initial investment in net working capital of $6,000, which will be fully recovered at the end of project?s life.?Please find out the operating cash flow and cash flow from asset for the investment over the five years.?Calculate the NPV of the project assume that you require a 15% return.

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