Gaston Company is considering a capital budgeting project that would require a $2,200,000 investment in equipment with a useful life of five years and no salvage value. The company's tax rate is 30% and its after-tax cost of capital is 12%. It uses the straight-line depreciation method for financial reporting and tax purposes. The project would provide net operating Income each year for five years as follows: $3,000,000 1,660,000 1,340,000 Sales Variable expenses Contribution margin Fixed expenses Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $520,000 440,000 960,000 380,000 Click here to view Exhibit 148-1 and Exhibit 148-2, to determine the appropriate discount factor(s) using tables. Required: Compute the project's net present value. Net present value EXHIBIT 148-1 Present Value of St. VO 15% VE SSE Periods 1 2 3 4 5 9 7 3 5 OST CO 10 11 12 9000 1600 COCO COO 15 5 9 TIN Us 19 096209520900935 0925 0.017 0900 0.901 0.893 0.005 0.877 0.070 0.362 0.055 0542 0.04008300306 00200003060.500 1972 20 223 27 20 0.925 0.907 0.8900873 0857084208200012 0797 0783 0.709 0.756 0243 0731 0.39 0.54 0.540 0516 0794 0772 07510731 0712 0718 0.706 0.094 063 06720001 0050 000 0.693 06750658 0641 0.624 0.000 0.590 0.579 05640551 0.537 0.5240912 0855 0.823 07920703073907080683 0659 0.636 060 05920.572 0552 0534 0516 0.299 0.482 046704510070400410 0822 0.734 077 073 0.631 0650062105930567 0.543 0.519 0.497 0.476 0.456 0.437 0.41904020:3800370 0.355 0.341022 0.79007450705 0656 060 0.596 0.564 0515 0.507 0480 0.456 0432 0.0100390 0.370 0352 0.335 0.19 0.300 0209 02750202 0.780 0711 0.6650623 0.583 0.547 0.50 0482 0.452 0425 0.400 0.376 0354 0 0 3140298 0.2700263024002050222 0.210 0731 06770627 05820540 0.502 0457 0.434 0.404 0.375 0.25% 0.327 0305 0.285 0.200 0.249 0233 0.20 0.204 0101 0.7030645 0.592 0.54 0.500 0.400 0.424 0.391 0.361 0.333 03080294 0200023 02250209 0194 0100097 0.955 0144 0168 06750605580500 0.463 0.422 0.306 0.352 0.322 0.295 0.270 0.247 0.227 0200 0191 01760162 0901370126 0115 0907 0650055 0527 0.4750429 0.388 0.15002317 02870201 022 02150195 0178 0.162 03 0050123012 0.625 055704970444 0.397 0.356 0.19 0.285 0.257 0221 02080107 0.168 0152 0137 0124 0112 0102 0092 0.00 0.070 0000 0801053004090.495 0368 0.326 0290 0.25% 0.2290204 0902 0.163 0445 0130016 01040093 0014, 07 00 0.00 0.055 05770505 0.442 0.208 0340 0.299 0.200 0.20 0.205 0101 0100011 0.125 0.11 0099 000 0.00 0.00 0.002 0.055 0049 004 0555 040 0417 0.362 0.315 02750239 0209 0.183 0360 05400123 03080095 0064 0.074 0,005 0057 005 0.005 0000 0035 0534 0.4580394 0.3390292 0252 02100188 OMI 0123 0907 0.093 0.001 0.07 0.002 0.054 000 0062 00:36 000 000 0.50 0.400 0.371 0317 0.270 0231 01900170 OS 01250100 0000 0000 0000 0000 0012 0045 0039 0.054 0000 0026 0.003 049404160350 0.20 0.250 02120100093 0.130 0111 0.005 000 0000 00500051 0041 0,0380032 0.025 0.021 0021001 0.475 0.396 0.331 0.277 0272 0196 0164 000 0116 0.008 0.08300700060 0051 0043 0.007 0.031 0027 0.023 0.020 2017 0014 0456 037 07120258 02150178 019 0124 0104 0.007 0.073 0.001 00510043 0.037 0.031 0.0200022 0.019 0.0% 0.014 0.012 0.39 0.359 0.294 0242 0199 0.154 115 011 0.093 007 0064 0.052 0044 0.007000100200022 0.098 0015 0.0130010009 0422 0.342 0.278 0.226 0164 0.15001230101 0.083 0064 0056 000 0.0000320026 0.022 0.01001500000 0.0000002 04060.326 0.262 0211 0170 0.1300112 0.091 0.074 0000 0000 0000 0.00 0.027 0.022 0018 0.01 0.02 0.000 0.000 0.007 0.006 0 2900310 0247 0197 0158 0.120 01020012 0.008 0.053 000 0035 0.028 0.023 0.01900150000000 0.000 0.007 0.0000005 0.375 0295 02330194 0140 0.16 0.092 00140059 0047 0.038 0000 0024 00200016000 0010 0000 0.007 0.006 0.005 0.004 0381 0261 0.220 0.172 0106 0.034 0006 0053 0042 000 0.025 0.021 0.0172 0.01 0.01 0.000 0.007 0.006 0.005 0.00 0.003 0.347 0.268 0.207 0961 0125 0.0980020 0000 0047 0.037 0.029 0023 0.0180.000 on 0.009 0.0070006 0,005 0,004 0.003 0.002 0333 0.255 01960.150 0.116 0:090 0009 0054 0.042 0033 0.026 0.020 0010 0012 0.010 0.00 0.008 0.005 0.004 0.003 0.002 0.002 03210243 0155 OG 0107 0.002 0063004000370 029 0.0220017 0.01001 0.008 0000 0005 0004 0.003 0.002 0.002 0.002 0.308 0231 0.174 0.001 0.099 0.075 0.057 0044 0.033 0.025 0.020 0,015 0,012 0.000 0.007 0.005 0004 0.000 0.00 0.002 0.002 0.001 0.2090142 0.097 0067 0.025 0.032 0.022 0,015 0.011 0000 0.00 0.00 0.003 0.002 0.001 0.001 000 0000 0.000 0.000 0.000 0.000 COLO 19 20 21 22 SONRAS SCIO . 24 25 26 27 20 29 30 40 BOHIBIT 140-2 Present Value of an any of in Periods 1 2 3 4 5 7 9 10 15 39 10% M 153 0.962 0.952 0943 09050920 19 0.90 200 21 2232 0.909 0.001 0.90 0385 0.77 0370 0362 035 0347 00 00 0.825 0320 00 00 00 1896 ESS 1533 1759 1736 160 1668 1541 2775 2722 1626 1505 1505 1506 1547 2673 2624 2.571 2531 152 15091492570 2.457 2444 2.402 2361 222 223 224 2210 2114 3630 3540 3055 2100 2100 2357 330 3200 3770 2014 2012 2011 3102 1037 2.994 295 2955 2.798 273 2600 269 250 2540 2498 2401 2042302 245229 4212 4000 2993 3.890 3791 330053517 3.4333352 12713199 1122 3058 7.991 2926 2004 2003 2745 2009 5242 5075 917 4762 4623 4436 4355 4231 m 39983.8893.704 258535093.490 240 2326 2215 257 6.002 5786 5552 5380 5200 5033 209210202951 4.568 4712 45644423 424.560 4.039 3.922 3.812 2.700 2.605 3.508 2470 6733 68536200 5247 5525 217112011 5.335 5140 4968429946794432 434 4207 40783954 357 3726 265 25131023179 7435 DOS 6302 5.575 6.247 5.995 5759 5537 53285132 946 472 4607 4451 43034363 4.081 3905 3.766 16733566 2063 2350 2024 670 6.418 6.545 5.889 57650 5.426 5.216 5.099 4833 4659 4494 4339 4192 40543922 1.799582351 3.780 32057587 7499 2009 6.305 6.496 6207 5900 5.6875.53 5234 5.029 330 4656 4400 4327 477 40953902 37783656 935 3.363 34 703 7534 7561 614 6.492 594 595 56505421 5197 4988 47934611 4/39427 4127 298538511 9394 885 85B 7.904 7462 7103 67506424612256425583 53425 4910 4715 453343420346522922710 105639.999 9235 36244 2786 23676.982 862863025002 5724 400 52295.00 4.502 4.01 402 42051500 1952324 TE 103097 0.108 3.559 100 76002191 6.011 6.462 6.542 584755755124 5.092 4.7067549415 415) 2001 059 TL591058008 8891 230 78247796946604 6.265 5954 5.000 5.40553624938 4730453643574 403 180 2166 214 10477 9.00 0122 3.544 1022 75092120 67296.735.047 5749 5.475 5.272 4900 477545704314219059390 12.650 1160010205002372 8.756 3. 2017302 7.250 640 64676128 5.818 5534 52735033 48124.000 44142434000 1.920 0134 12.005 150 10.2369604 3950 365 78007306 6938 6.550 698 55775534 5.30 5.07010403544424203 4.001 102 0901246211470 1050 TS 9.129 35 7.9837402 7025 6.623 6259 5.929 5.628 5.255.101 4370 4657 4400 427940 1400923211004 10336100179.252 864007575627102 66 6312 5973 5665765127 4.89146744764292 101 1003 51 1393 1204201 10.201 962 772 167545 2170 00359 601 5.696 5105549 1096004443020 1910 57 3400 12:30 1.272 10 9530 205 2715 7230679263996066 57235.412 5107 1925 7044093 07 1970 1520799 12.550 11400 10.529 9.707 8.905 8343270472806056434 6073579554565182 4507470 4507 3001 15.622 094 1273 11654 0.625 9823 90778422730 7330 6.73 6.464 0975.766565995 49721 4547347 1903 9361 159514375 2003 120103109.929 B487096 71725.906 416119 3900 570 5.400 5200 495647245204303451 610 5.90 502 5:25 496131453443524154090 16.300 21 19 10 935 10 Z7 92373548700 7400 6.905 16600612.07 11.05 100 9430716022904747 6.905346.152.00 5.50252234970304305057 992 161951 1516 3501 1220158 9370 650 022 740 6.9365516665.00 550 5229 975 40 451 430 432904 5129551752359700160905 17292 15372 3.765 2400 11258902740007160605574967003556 77 19 7150 1504533111925 1057 66422835 07554852519974.750454443474586995 97793951 2441 78367105 75 10 FDDORNOS 22 23 20 20 28 20 30 20