Management of Braden Boats, Inc. is considering an expansion in the firm's product line that requires the purchase of an additional $190,000 in equipment with installation costs of $19,000 and removal expenses of $3,000 (Note: the removal expenses are considered terminal cash flows). The equipment and installation costs will be depreciated over five years using straight-line depreciation. The expansion is expected to increase earnings before depreciation and taxes as follows: Years 1 and 2 Years 3 and 4 Year 5 $ 74,000 $61,000 $ 83,000 The firm's income tax rate is 30 percent and the weighted average cost of capital is 18 percent. Based on the net present value method of capital budgeting, should management undertake this project? Use Appendix B to answer the question. Use a minus sign to enter negative value, if any. Round your wer to the nearest dollar. NPV: $ make the investment. The firi -Select- should should not Interest Factors for the Present Value of One Dollar Time Period (e.g. year) 1 1% 2% 7% NM 990 980 .971 961 .951 3% 4% 980 971 962 1961 .943 925 .942 .915 .889 924 889 855 .906 863 822 5% 952 907 .864 .823 .784 6% .943 .890 .840 .792 .747 935 .873 .816 .763 .713 8% .926 .857 .794 .735 .681 9% 917 .842 .772 .708 .650 10% 12% 14% 15% .909.893 .877 870 .826 .797 .769 .756 .751 .712 .675 .658 .683 .636 592 .572 .621 .567 519 497 16% .862 .743 .641 .552 476 18% .847 .718 .609 1516 437 20% .833 .694 .579 482 402 24% .806 .650 .524 423 .341 28% .781 .610 477 373 291 4 5 6 7 8 9 10 942 933 923 914 905 .888 838 790 .746 .705.666 630 .871 .813 .760 .711 .665.623 583 .853 .789 .731 677 627 582 .540 .837 .766 .703 645 592 544 .500 .820 .744 .676 614 558 508 463 596 .547 -502 460 .422 564 507 1513 452 467 .404 424 361 .386 .322 .456 .432 400 376 .351 327 .308 .284 .270 247 .410 .370 335 .354 .314 .279 .305 266 233 .263 226 .194 .227 191 .162 .275 .222 .179 .144 .116 .227 .178 .139 . 108 .085 11 12 13 14 15 .896 .887 .879 .870 .861 .804 .788 .773 .758 .743 .722 .701 .681 .661 .642 .650 .625 .601 .577 .555 .585 .557 .530 .505 .481 .527 .497 469 .442 417 475 .444 415 388 362 .429 .397 .368 .340 315 .388 .356 326 .299 .275 .350 .319 .290 .263 .239 .287 .257 .229 .205 .183 .237 .208 .182 .160 .140 .215 .187 .163 .141 .123 .195 .168 .145 .125 .108 .162 .137 .116 .099 .084 .135 .112 .093 .078 .065 .094 .076 .061 .049 .040 .066 .052 .040 .032 .025 16 17 18 19 20 .853 .844 .836 .828 .820 .728 .714 .700 .686 .673 .623 .605 .587 .570 .554 .534 .513 1494 475 456 .458 436 416 396 377 .394 .371 350 .331 .312 339 317 .296 .276 .258 .292 .270 .250 .232 .215 .252 .231 .212 .194 .178 .218 .198 .180 .164 .149 .163 .146 .130 .116 .104 .123 .107.093 071 .054 .032 .019 .108.093 .080 .060 .045 .026 .015 .095 .081 .069 .051 038 021 .012 .083 .070 ,060 .043 031 .017 .009 .073 .061 .051.037 .026 .014 .007 25 .780 .610 .478 .375 .295 .233 .184 -146 .116 .092 .059 .038 .030 .024 .016 .010 .005 .002 30 .742 .552 -412 308 .231 .174 .131 .099 .075 .057.033 .020 .015 .012 .007 .004 .002 .001