An egg producer wants to expand production with a new cage-free egg facility to meet new demand. It will purchase a plot of land for $96,400 and then construct the new house for $3,180,000. The IRS will allow the producer to depreciate new improvements using straight-line over 30 years. The investment will generate $2,195,000 in annual revenue and $1,910,000 in annual operating expenses. The real terminal value of the investment in 20 years is $1,595,000. The egg producer will take out a $2,900,000 loan fully amortized over 15 years with a 5.8% interest rate. The marginal tax rate is 28% and the rate of inflation is 0.85%. The producer has a pre-tax, risk-free required rate 8% and a risk premium of 5%. (iv) Calculate the present value of after-tax net returns? a. $2,008,706 b. $1,950,636 c. $1,833,105 d. $1,734,792 e. None of the above Enter Response Here: (v) What are the nominal after-debt net cash flows in year 12? a. $50,905 b. $20,164 c. $21,225 d. $52,600 e. None of the above Enter Response Here: (vi) Calculate the after-tax terminal value if the expansion was sold after 20 years. a. $1,739,878 b. $1,657,027 c. $1,599,818 d. $1,768,219 e. None of the above Enter Response Here: (vii) What is the net present value of the investment if the egg producer sells the facility and the land after 20 years? a. $52,945 b. $55,731 c. $66,502 d. $65,062 e. None of the above Enter Response Here