Littau Inc. has provided the following data concerning an investment project that has been proposed: The company's tax rate is 30%. For tax purposes, the entire initial investment will be depreciated over 7 years without any reduction for salvage value. The company uses a discount rate of 19%.
-The net present value of the project is closest to:
A) -$4,949
B) $25,780
C) $23,766
D) -$6,412

Question

Littau Inc. has provided the following data concerning an investment project that has been proposed:  The company's tax rate is 30%. For tax purposes, the entire initial investment will be depreciated over 7 years without any reduction for salvage value. The company uses a discount rate of 19%.
-The net present value of the project is closest to:
A) -$4,949 
B) $25,780 
C) $23,766 
D) -$6,412

Quizplus · Accepted Answer

The Answer of Littau Inc. has provided the following data concerning an investment project that has been proposed:  The company's tax rate is 30%. For tax purposes, the entire initial investment will be depreciated over 7 years without any reduction for salvage value. The company uses a discount rate of 19%.
-The net present value of the project is closest to:
A) -$4,949 
B) $25,780 
C) $23,766 
D) -$6,412