A firm plans to build a plant on land it owns. The firm paid $200,000 for the land 30 years ago. Its current market value is $2,000,000. Construction costs, including machinery, will require an initial outlay of $20,000,000. The project will create sales of $12,000,000 per year for years 1-10. No change in other operating costs is expected. The firm uses straight line depreciation over the 10 year life of the project. Salvage value is $1,000,000. The tax rate is 40%. 23. The initial investment is $_ $24,000,000 $24,200,000 $23,000,000 $22,000,000 $22,200,000 900 Given the information in the chart below: Project A Project B Year Net Cash Flow Year Net Cash Flow 0 -1000 0 -2000 1 1 900 2 900 2 900 3 900 3 900 4 900 4 900 5 5 900 6 6 If the discount rate is 12% and you have to choose between these two projects, what is the equivalent annual series of the best project? OWNO 900 $413.55 $440.78 $500.00 $570.77 $584.53