Andronicu Corporation ha the following jumbled information about an invetment propoal: Revenue in each of year 1–3 = $23,000 Year 0 initial invetment = $43,000 Inventory level = $11,500 in year 1, $12,300 in year 2, and $6,500 in year 3 Production cot = $7,900 in each of year 1–3 Salvage value = $12,300 in year 4 Depreciation = 100% immediate bonu depreciation Tax rate = 21% Cutomer pay with a 6-month lag Draw up a et of cah flow forecat a in Table 6. 4. If the cot of capital i 8%, what i the project’ NPV? Aume that, if the project generate loe, thoe loe can be ued to offet profit elewhere in the buine
