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FTCO is considering the purchase of new equipment. The equipment costs $342000, and an additional $112000 is needed to install it. The equipment will be

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FTCO is considering the purchase of new equipment. The equipment costs $342000, and an additional $112000 is needed to install it. The equipment will be depreciated straight-line to zero over a 5-year life. The equipment will generate additional annual revenues of $263000, and it will have annual cash operating expenses of $85000. The equipment will be sold for $81000 after 5 years. An inventory investment of $72000 is required during the life of the investment. FITCO is in the 40 percent tax bracket, and its cost of capital is 10 percent. What is the project NPV? O $58347. $74527 $42843 $91421

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