Input Data: Property & equipment (FA) $680,000,000

Shipping & installation fee $25,000,000

Depreciation Basis $705,000,000

Unit Sold in Year 1 2,560,000

Required NOWC as % of Sales 12%

Annual Growth Rate of Sales 5.5%

Unit Sales Price in Year 1 $255

Variable Costs (VC) per Unit in Year 1 $200

Annual Inflation: Growth in Sales Price 1.80%

Annual Inflation: Growth in VC per unit 1.80%

Company Tax Rate 26.0% WACC 7.20%

Fixed Asset MACRS Class 7.00%

Duration of the project 8.00%

Calculate the Market Value of FA at Salvage?