## Fixed Investment Assets:

The fixed investment assets are the assets that exist for a long period. The example of the fixed investment assets is the purchase of plant and machinery, building, equipment and etc, which is primarily used by the company as part of their operation.

#### Step 1 of 2:

We need to calculate the net present value of the project using the following formula:

{eq}\begin{align*} NPV&=-(Initial~investment+Initial~NWC)-[OCF*(PVIFA~rate, time)]\\ &=-(295,000+27,000)-[26,000*(PVIFA~12\%, 5)]\\ &=-322,000-(26,000*3.6048)\\ &=-322,000-93,724.18\\ &=-415,724.80\\ \end{align*} {/eq}