Calculating Project NPV

Calculating Project NPV. With the growing popularity of casual surf print clothing, two recent MBA graduates decided to broaden this casual surf concept to encompass a ´surf lifestyle for the home´. With limited capital, they decided to focus on surf print table and floor lamps to accent people´s homes. They projected unit sales of these lamps to be 5,000 in the first year, with growth of 15 per cent each year for the next five years. Production of these lamps will require £28,000 in net working capital to start. Total fixed costs are £75,000 per year, variable production costs are £20 per unit, and the units are priced £45 each. The equipment needed to begin production will cost £60,000. The equipment will be depreciated using the reducing-balance method (20 per cent, and is not expected to have a salvage value. The effective tax rate is 28 per cent, and the required rate of return is 25 per cent. What is the NPV of this project?

Don't use plagiarized sources. Get Your Custom Essay on
Calculating Project NPV
Just from $13/Page
Order Essay
Calculate your order
Pages (275 words)
Standard price: $0.00
Client Reviews
4.9
Sitejabber
4.6
Trustpilot
4.8
Our Guarantees
100% Confidentiality
Information about customers is confidential and never disclosed to third parties.
Original Writing
We complete all papers from scratch. You can get a plagiarism report.
Timely Delivery
No missed deadlines – 97% of assignments are completed in time.
Money Back
If you're confident that a writer didn't follow your order details, ask for a refund.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
$0.00
Power up Your Academic Success with the
Team of Professionals. We’ve Got Your Back.
Power up Your Study Success with Experts We’ve Got Your Back.
Live Chat+1(978) 822-0999EmailWhatsApp

Order your essay today and save 20% with the discount code GOODESSAY