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Based on the information listed below concerning a capital budgeting project, the total cash flow in year 25 for this project is $ . Last year, Muskett Inc., which makes nonflammable fireworks, hired an engineering firm to evaluate the technical capabilities of three different pieces of high-tech equipment that may be used in their manufacturing process. The study cost $300,000 and the results suggested that only the ECU-9 was capable of meeting Muskett's needs. The ECU-9 will cost $4 million The equipment will be depreciated straight line over 25 years to a salvage value of $400,000 and sold for that amount in 25 years. If purchased the ECU-9 will increase revenues by 52.3 million per year and increase operating cost by $1.5 million per year. The company will increase net working capital by $170.000 at the beginning of the project. This working capital will be liquidated at the end of the project. The marginal tax rate is 25% The cost of capital is 13.00% 11 1.216,000 2) 1,186,000 100 000 . in 25 years If purchased the ECU-9 will increase revenues by $2.3 million per year and increase operating cost by $1.5 million per year, The company will increase net working capital by $170,000 at the beginning of the project. This working capital will be liquidated at the end of the project. The marginal tax rate is 25%. DO The cost of capital is 13.00%. . . 1) 1.216,000 2) 1.186,000 3) 1,206,000 4) 9.836,000 5) 1.036,000 Page 40 of 41