Mester Corporation has provided the following information concerning a capital budgeting project: 9 After-tax discount rate Tax rate Expected life of the project Investment required in equipment Salvage value of equipment Annual sales Annual cash operating expenses One-time renovation expense in year 15% 30% 4 $ 120,000 $ 0 $ 260,000 $ 180,000 $ 30,000 The company uses straight-line depreciation on all equipment. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting. Click here to view Exhibit 13B-1 to determine the appropriate discount factor(s) using table. The net present value of the project is closest to: 10 Last year the sales at Summit Corporation were $400,000 and were all cash sales. The expenses at Summit were $250,000 and were all cash expenses. The tax rate was 30%. The after-tax net cash inflow at Summit last year was