[hirain]

The question I did indicate that

– No cashflow given
– Initial outlay of $520
– Net contribution of $300
– Additional fixed cost estimated to be $160
– Salvage value of $100 in 5 year times
– Company use straight line basis method for depreciation
– cost of capital is 12%
– ignore taxation

So do I add or subtract the depreciation in the NPV?

[hirain]

Regarding the last question, what i mean is that can the cost of capital percentage be the same as the r values?

Also, how do I calculate NPV if cashflow isnt given in the question?

[Author]

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