1. Mercury Marine Corp is considering building an additional facility in the Appleton area here are the facts what is the net present value of this investment? Would you move forward with this project an make the investment?
   1. Initial investment of $2,000,000
   2. 10 year life with no salvage
   3. $600,000 additional marginal (differential) cash flows annually
   4. Annual expected property (fire, windstorm, etc) losses of $100,000
   5. Straight line depreciation
   6. 40% tax rate
   7. Minimum acceptable rate of return of 10%
   8. PV of $1 received at each of the next 10 years at 10% is 6.1446