If using the ${15}^{th}$ edition of the text $($or an earlier

edition$),$ refer to the Web Tax Appendix to correctly

answer this question. Altman Inc. is considering a new

investment whose data are shown below. The required

equipment will be used for $3$ years during the project's life.

The equipment qualifies for bonus depreciation, so it will

be fully depreciated at the time of purchase. It will have a

positive salvage value at the end of Year $3,$ when the

project would be terminated. Also, some new net operating

working capital would be required, but it would be

recovered at the end of the project's life. Revenues and

operating costs are expected to be constant over the

project's $3-$year life. What is the project's NPV$?$

WACC $9\%$

Purchase price of equipment $$125,000$

Required new NOWC $$20,000$

Sales revenues $$140,000$

Operating costs $$60,000$

Before$-$tax salvage value $$12,000$

Tax rate $25\%$

a$.$ $$40,115\mathrm{.}00$

b$.$ $$45,675\mathrm{.}00$

c$.$ $$49,825\mathrm{.}00$

d$.$ $$55,310\mathrm{.}00$

e$.$ $$60,521\mathrm{.}00$