21. The company Sub-Prime Loan Company is thinking of opening a new office, and the key data are shown below. owns the building that would be used, and it could sell it for $100,000 after taxes if it decides not to open the new office. life, after which it would be worth nothing and thus it would have a zero salvage value. No new working capital would be required, and revenues and other operating costs would be constant over the project's 3-year life. What The equipment for the project would be depreciated by the straight-line method over the project's 3-year is the project's NPV? (Hint: Cash flows are constant in Years 1-3.) 10.0% $100,000 $65,000 33.333% $141,000 $25,000 35% Opportunity cost Net equipment cost (depreciable basis) Straight-line depr. rate for equipment Sales revenues, each year Operating costs (excl. depr.), each year Tax rate A) S35,161 B) $43,848