Calculations Shown

An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,100,000 and will be sold for $1,300,000 at the end of the project. If the tax rate is 35 percent, what is the after tax salvage value of the asset

A project costs $ 50000, will be depreciated straight-line to zero over its 3 years life, and will require a net working capital investment of $10000 up-front. The project generates OCF of $30000. The fixed assets will be sold for $8000 at the end of the project. If the firm has a tax rate of 35% and required return of 12%, what is the project NPV?