DeVault Services Recently Hired You as a Consultant to Help

question 36

Multiple Choice

DeVault Services recently hired you as a consultant to help with its capital budgeting process. The company is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would be depreciated by the straight-line method over its 3-year life, and would have a zero salvage value. No new working capital would be required. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's NPV?

• A) $15,740
• B) $16,569
• C) $17,441
• D) $18,359
• E) $19,325