1. Labtech, a laboratory equipment corporation, is considering entering the business of making soundproof rooms. This will require an initial investment of $80,000 at the end of 2012. The project has a 3-year life, after which the salvage value is 1/5th of the initial investment. Labtech forecasts the following: Number of units sold Costs of running plant 2013 20 289,000 2014 40 155,000 2015 25 140,000 Labtech anticipates it can sell the rooms for $10,000 each. Labtech uses straight-line depreciation and faces a tax rate of 34%. Assume all cash flows are received at year end and that Labtech has profitable ongoing operations such that any losses for tax purposes can be offset against these. Develop a table showing the annual cash flows and calculate the NPV of this project at an 8% discount rate