一道关于corporate finance的问题——CFA一级 finance, generate, including, following, corporate

jessica860704

An analyst gathered the following data about a project:
1, Costs are $8,000 plus $2,000 in shipping and installation.
2, For the next five years, the project will annually generate $5,000 sales and $2,000 costs, not including depreciation.
3, The project is being depreciated on a straight-line basis over five years with no salvage value.
4, The company's tax rate is 40%, and the weighted average cost of capital is 10%.
The project's NPV is closest to:
A. -144 B. 144 C. 279 D. 1244.

这题怎么也算不到任何一个答案，请老师帮忙解答一下，谢谢！

chenghao1

我用英文做解答吧，比较快。我想应该是这样做的。

 

initial setup costs = -8,000 - 2,000 = -10,000

 

income: [ sales - costs - depreciation ] * (1-tax)

[5000-2000-2000] * (1-.4) = 600

 

NPV: since depreciation does not affect CASH flows, then add back 2000 to 600, resulting in 2600 as cash inflows per year.

 

use your calculator

CF0 = -10,000

C01 = 2600

F01 = 5

 

I = 10

[CPT] NPV = -143.954