An urban cooperative in Austin that supplies leafy greens and herbs to local restaurants and grocery stores is looking to expand their operation. The co-op would like to build an aquaponic system to increase their production of greens and also start producing tilapia. The new system would cost $28,000 to purchase and construct. The co-op projects that it will yield $240 of tilapia and $600 of leafy greens every week. Operating expenses are expected to increase by $15,200 annually due to fish nutrients, utilities, maintenance, and additional labor. Suppose that the workers wanted to evaluate this investment over a five-year period of time before committing. They expect that the components could be sold for $5,500 after five years of use. Taxes are expected to stay at 20% for the next six years. The IRS will allow the co-op to depreciate the system using straight line over 15 years. Assume that the terminal value of this investment is $5,500 at the end of five years. The coop requires an 16% return to capital (pretax). (i) Calculate the annual operating receipts a. $28,480 b. $15,200 c. $43,680 d. $43,860 ENTER RESPONSE HERE: (ii) Calculate the after tax-net returns a. $22,928 b. $28,480 c. $28,660 d. $22,784 ENTER RESPONSE HERE: (iii) Calculate the tax savings from depreciation a. $1,866 b. $2,333 c. $373 d. $299 ENTER RESPONSE HERE: (iv) Calculate the after-tax terminal value a. $14,000 b. $8,133 c. $4,400 d. $5,500 ENTER RESPONSE HERE: (v) Which discount rate should be used for calculating the NPV of this investment? An urban cooperative in Austin that supplies leafy greens and herbs to local restaurants and grocery stores is looking to expand their operation. The co-op would like to build an aquaponic system to increase their production of greens and also start producing tilapia. The new system would cost $28,000 to purchase and construct. The co-op projects that it will yield $240 of tilapia and $600 of leafy greens every week. Operating expenses are expected to increase by $15,200 annually due to fish nutrients, utilities, maintenance, and additional labor. Suppose that the workers wanted to evaluate this investment over a five-year period of time before committing. They expect that the components could be sold for $5,500 after five years of use. Taxes are expected to stay at 20% for the next six years. The IRS will allow the co-op to depreciate the system using straight line over 15 years. Assume that the terminal value of this investment is $5,500 at the end of five years. The coop requires an 16% return to capital (pretax). (i) Calculate the annual operating receipts a. $28,480 b. $15,200 c. $43,680 d. $43,860 ENTER RESPONSE HERE: (ii) Calculate the after tax-net returns a. $22,928 b. $28,480 c. $28,660 d. $22,784 ENTER RESPONSE HERE: (iii) Calculate the tax savings from depreciation a. $1,866 b. $2,333 c. $373 d. $299 ENTER RESPONSE HERE: (iv) Calculate the after-tax terminal value a. $14,000 b. $8,133 c. $4,400 d. $5,500 ENTER RESPONSE HERE: (v) Which discount rate should be used for calculating the NPV of this investment