Ch. 8 - Problems 16 Problem 8-23 Project Analysis and Inflation points Mustang Enterprises, Inc., has been considering the purchase of a new manufacturing facility for $286,000. The facility is to be fully depreciated on a straight line basis over seven years. It is expected to have no resale value after the seven years. Operating revenues from the facility are expected to be $121000, in nominal terms, at the end of the first year. The revenues are expected to increase at the inflation rate of 3 percent. Production costs at the end of the first year will be $46,000, in nominal terms, and they are expected to increase at 4 percent per year. The real discount rate is 6 percent. The corporate tax rate is 35 percent. eBook Calculate the NPV of the project. (Do not round intermediate calculations and round your answer to 2 decimal places, ... 32.16.) NPV References