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Consider the following debt-free project for a machine:

Physical Lifespan 7 years
Capital Expense, Year 0 $14,000
EBITDA / Year $8,000
Cost of Capital 9.9%
Tax Rate 39%
Depreciation Life 4 years

What is the value of this project?

Carry out calculations to at least 4 decimal places. Enterpercentages as whole numbers. Example: 3.03% should be entered as3.03. Do not include commas or dollar signs in numericalanswers.

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Collen Von
Collen VonLv2
28 Sep 2019

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