En'na's Beauty Supply is considering expanding the existing store. Errna wants tcu lease the d'Fee space next deer ta her husi n55. Errna must spendr $129.E|D| on equipment 13:: expand. The equipment is expected 13:: have a zero-salvage value and will be netimd in E fears. Errna expects 11: increase networking Gpital l:|1.r $1EI..[IUIE| right new if she QUE through with the expansion. Erma spent $12,004] last rncunth en a surwe1.r of the area sun'quncling the shep 13:: see iF there was suFcient demand for a langer shore. Errna Etimat she will increase REHEI'IIJE by $l.|]l per year in the new supre fer eight years. 1111! dimct expenses incurred ta rnalee these sal are $65.1]DI], induding mnt. The lease she is cansidering signing is for El years. She will liquidate the $1rl networking capital Iwhen the lease is complete in E fears. Errna's Beauty- 5uppl3r pay-s 40.0% in taxes, and has a nest efpital ch 1|].EI%. Based ran this infqmatiqn. the project's terrninal year [year 8] total ash Jr'lvta'lnil is $ '2" O 1] 33,2uu O 2] 35.3w: 0 3] 3mm: 0 4) seam: O 5341,:mu