Assumptions
The depreciation rate as used in the table is provided by the American house of Congress. Tax rate incurred on a new project as per IRS rates is 50% as of 2017 If the company owns assets that could otherwise be sold in case the project is rejected, these will appear in the table as opportunity cost
No sinking fund incurred as no expenditure has taken place of yet
In case cash flow reduces in one of the departments in the company, it will reflect as cannibalization in the table
The straight line depreciation uses a steady value of 25%
Analysis of DCF Since the net present value is greater than zero, the project should be accepted. If the value of ...