14. A project costs $45,000, will be depreciated straight-line to zero over its 3 year life, and will require a net working capital investment of S600 up-front (which will be recovered at the end of project's life). The project has a required return of 12%. The project generates OCF of $18,000/year. What is the project's NPV? A) S 1,547.80 C) $ 1.285.43 B) S 2,115.61 D) S 1,939.97 Use the following information to answer next three questions. A project requires an investment in fixed asset of $1,400,000. This cost will be depreciated straight-line to zero over the project's ten-year life. The project will save the firm $240,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $100,000. Tax rate is 20% and the discount rate is 8%. 15. Calculate the depreciation tax shield. A) $28,000 C) $48,000 B) $30,000 D) $80,000