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Business, 21.11.2019 20:31 tmkyer2

Eggz, inc., is considering the purchase of new equipment that will allow the company to collect loose hen feathers for sale. the equipment will cost $435,000 and will be eligible for 100 percent bonus depreciation. the equipment can be sold for $51,000 at the end of the project in 5 years. sales would be $283,000 per year, with annual fixed costs of $49,000 and variable costs equal to 36 percent of sales. the project would require an investment of $29,000 in nwc that would be returned at the end of the project. the tax rate is 22 percent and the required return is 9 percent. calculate the npv of this project.

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