Swannee Resorts 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 the project’s 3 year life, and would have 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? (Hint: Cash flows are constant in Years 1-3.),, ,, WACC 10%,, Net investment cost (depreciable basis) $65,000,, Straight line depr™n rate 33.33%,, Sales revenues $70,000,, Operating costs excl. depr™n $25,000,, Tax rate 35%,
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