Long Inc. Is analyzing a $1 million investment in new equipment to produce a product with a $5 per unit margin. The equipment will last 5 years, be depreciated on a straight-line basis for tax purposes, and have no value at the end of its life. A study of unit sales produced the following data. Annual Unit Sales 80,000 85,000 90,000 95,000 100,000 110,000 Probability 0.10 0.20 0.30 0.20 0.10 0.10 If Long utilizes a 12% hurdle rate and is subject to a 40% effective Income tax rate, the expected net present value of the project would be Multiple Choice $261,750 $283,380 $297,800 $427,580