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 thisinvestment?Would you move forward with this project an make the investment?

a .Initial investment of $2,000,000

b. 10 year life with no salvage

c. $600,000 additional marginal (differential) cash flows annually

d. Annual expected property (fire, windstorm, etc) losses of $100,000

e. Straight line depreciation

f. 40% tax rate

g. Minimum acceptable rate of return of 10%

h. PV of $1 received at each of the next 10 years at 10% is 6.1446