____________________ DPB ____________________ NPV ____________________ MIRR ____________________ PI ____________________ Will the company ACCEPT the project? ____________________ Why or why not?

Base price is $150,000 $9,500 to modify MACRS 3-year class property Sold after THREE (3) years for $15,500 Additional Net Working Capital (NWC) required in the amount of $6,000 SAVINGS of $68,000 per year Tax rate is 40 percent Cost of capital is 8.0000% MACRS Recovery Allowance Percentages Year Ownership 3-Year 5-Year 7-Year 1 33 20 14 N 45 32 25 3 15 19 17 4 7 12 13 5 11 9 6 6 6 9 7 9 8 00 4 4