Corp. is considering investing $50,000 in equipment to produce a new product. The useful service life of the ent is estimated to be 10 years, with no salvage value. Straight-line depreciation is used. Harris estimates roduction and sale of the new product will increase net income by $$,000 per year. What is the expected rate that product of return on average investment in this equipment? 2.5% b. 15% c. 20% d. 25% 7 Fox Corp. is considering purchasing equipment costing $109,000 with an estimated life of 3 years and no salvage value. The net after tax cash flow from the project for each of the 3 years is expected to be $45,000. Fox's cost of capital is 10%. Compute the net present value of the equipment. Present value of $1 due in 3 years, discounted at 10%, is 0.751. Present value of $1 received annually for 3 years, discounted at 10%, is 2.487. a $2,548 h $2,915 c S3,213 d. $3,616 nt yalue method for evaluating an investment, an increase in the required rate of return tha net nresent meth