Baynes Corporation is considering a capital budgeting project . It would require Investing $200,000 in equipment with an expected life of 4 years and zero salvage value Annual incremental soles would be $490,000 Annual incremental cash operating expenses would be $330,000 The project would also require an immediate investment in working capital of $10,000 which would be released for use elsewhere at the end of the project The project would also require a one-time renovation cost of $70.000 in year 3 The company's income tax rate is 30% and its after-tax discount rate is 14% The company uses straight-line depreciation Assume cash flows occur at the end of the year except for the initial investments The company takes income taxes into account in its capital budgeting Use the Present Value of $1 Table: Click here to view Exhibit 148.1 to determine the appropriate discount factors) using table The niet present value of the entire project is closest to Multiple Choice $259,000 $126.876 O $24.750 $130,790 All cash inflows are taxable. True or False True False