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XYZ Corp  has a project that sells 17,100 units of product X a year at $5

Finance

XYZ Corp  has a project that sells 17,100 units of product X a year at $5.71 per unit. Its capital equipment costs $18,270 and is depreciated straight-line over 9 years with no salvage value. Its variable costs are 9.70% of sales and fixed costs are $51,100 per year. The required return is 10.00% and the tax rate is 35%. Assume there is no impact on working capital. What is the NPV of the project?

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