A-Float Designs manufactures recreational pedal boats. The company is interested in investing in some new technology to produce some of its pedal boat components. This project clearly involves risks and management wants to make sure that the returns justify the risks. The Finance Department thinks that a 15% discount rate is appropriate to use to evaluate the investment. To aid in your analysis, the following information and assumptions have been provided. 1. The new equipment will have a cost of $256,000, a salvage value of $0, and an 8-year useful life. Straight-line depreciation will be used. 2. The projected revenues, costs, and results for each of the 8 years of this project are as follows. Sales $220,000 Less: Manufacturing costs $140,000 Depreciation $32,000 Shipping & administrative costs $22,000 $194,000 Income before income taxes $26,000 Income tax expense $10,800 Net income $15,200 Adanted: Klose KWK 7th