Calibration Inc. is considering a new 4-year expansion project that requires an initial fixed asset investment of $3 million. The fixed asset will be depreciated straight-line to zero over its 4 -year tax life. At the end of the project, the fixed asset can be sold at a market value of $225,000. The project requires an initial investment in net working capital of $330,000, all of which will be recovered at the end of the project. The project is estimated to generate $2,640,000 in annual sales, with costs of $1,056,000. The tax rate is 30 percent and the required return for the project is 14 percent. What is the net present value for this project? Select the choice that is closest to your answer. $681,409 $756,700 $844,949 $894,431 Question 21 1 pts You recently purchased a stock that is expected to earn 18 percent in a booming economy, 9 percent in a normal economy, and lose 33 percent in a recessionary economy. There is a 5 percent probability of a boom and a 75 percent chance of a normal economy. What is your expected rate of return on this stock? Select the choice that is closest to your answer. 0.94 percent 1.05 percent 1.15 percent 1.65 percent