Unformatted text preview: What is the NPV? 3. Now suppose the project requires an initial investment in net working capital of $250,000 and the fixed asset will have a market value $300,000 at the end of the project. What are the cash flows in years 0, 1, 2, and 3? What is the NPV? 4. Poole’s management realizes they can use accelerated depreciation instead of straight-line. The fixed asset falls into the three-year MACRS class. Everything else is the same as in the previous problem. What are the cash flows in years 0, 1, 2, and 3? What is the NPV?...
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- Spring '11
- Depreciation, Generally Accepted Accounting Principles, Fixed asset