Initial cost $300,000 Expected life 5 years Est. Scrap value $20,000 Addition revenue from the project – $120,000 per year Incremental costs of the project – $30,000 per year cost of capital 10%
There is no point in simply asking questions and wanting the answer.
Presumably the book in which you found the question also has an answer. You should say where you have problems understanding the answer and then I will try and help.
(If you do not have the answers because it is homework, then we are certainly not here to do your homework 🙂 )