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met traded Problems nt 7 Graded Problems Gaston Company is considering a capital budgeting project that would require a $2.000.000 investment in equipment with a

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met traded Problems nt 7 Graded Problems Gaston Company is considering a capital budgeting project that would require a $2.000.000 investment in equipment with a useful life of five years and no salvage value. The company's tax rate is 30% and its after-tax cost of capital is 15% It uses the straight line depreciation method for financial reporting and tax purposes. The project would provide net operating income each year for five years as follows: $3,200.000 Variable expenses Contribution margin 1.870.000 1.330,000 ned Advertisins salaries, and other out-of-pockett 350.000 990.000 et operating income Click here to view Exhibit 78:1 and Exhibit 7B-2. to determine the appropriate discount factors) using tables. Required: Compute the project's net present value. Pro 200000000000 000 000000002075t07317063 0675 52 060 051 05 04 055 05 054 052 ONS 0 OOO O O 063 062 06 06 052 052 05 056 043 042 065704510001040 5 2 070M O D 0 0 0 0 0 0 0 0 0 041900016 0.00355 6 0003060705 066 060055 054 055 05 06 0456 0000 3700252 090303 02 05020 7 05 06 01005100 0000 0 0 26 027 026 026 025 0222210 OHT O 002 050 051 052 026 027 0201 001 906650592000 2200225 09052015 1 00so osus 0527 045 0429 0 0 350 om on om on om om on one on onnoun on om oondooms 0035 0.5570697 06 00156 0.39 0286 07 00 200 000 0000 002 0052 000 000 0 0 0 0530 069 0 2 6 029 028 027 07042016700001160104 008 005 0068 067 0055 50505 04 03 02 0263 0 00 000 000 000 DON 09 0062 0055 000 000 5 01 04 03 0275 029 020000160 00 00 00 04 OM 0 057 005 0065 00 00 580000252 0200 003 700 000 000 0000 0002 00000000 1 00 050350 0 0 05 006 005 00 00 00 00 0 0381 0202040164050 DR 0000000000000000023 000 000 200456 077030253 02 01 019 0140104 0000 0061 00 00 00 00 0026 0022 00 00 00 000 21 0 0 0 0 0 0 0150 00 00 00 00 00 00 00 0026 00 00 00 00 00 000 2) 2002 2000 01100011 000 000 000 0026 002 000 001500000 0000 0007 2 000 0 0 0 000 000 000 000 0022 0000150012 000 000 000 0005 2 0 100200708002601200220006 0053 000 0005 008 0023 0019 000 000 000 000 000 000 000 295 020 0 00DN 00 00 000 000 000 000 000 000 000 000 000 000 0000 70 0 0000 0000 000 2 0258 0202 500 000 000 00 0023 Nom 0000 000 000 000 000 2 om ozes on oso on 0000 noun cos con con cous cous con nou con noo nooo ooos noor noo nooo 0002 020300 02 0061 006 0011 0 00 000 000 000 000 000 000 000 000 000 000 0 308 0231 01M0 0099 0075 005 004 000 000 000 00150000009 000 000 000 000 000 000 000 000 600208 0120091 0067 0005 0032 002 0100 000 0005 0004 000 000 000 000 000 0000 0000 0000 0000 0000 E S command command OT-2 Pretant Value of an any of the 2 3 275 27267 26 4 1630 346 345 13 10 505 10 15 0 25775 27242402 236 2322 223 224 220217120206201 2002 208 1952 330 32001030123255 2 60 2650294042 620 S90 3 10 20 7 5002555825520650 454 4 40 1921 301605150 2 0 66 5210 59 576 55 55 55 496 469 470 467834131361951101329 970S 782 5550 55575855 S 3005 3 1563 271507024 5 35 S SE SOS5S 35 1 MO17) 207 55565759 0 3656 9583847075367651 ) 6595660 5051943 4610 427 4127351851 3725 13 996 3 790476 GO 525 S SMS 51) 420005390370 5 15 7 50 7601 756S 5575 SS55 S536 16 11652 010617 R8574795964625 594 568 540556705703 1 611079 02 0275970067 600 5250 522290675 2190533970 D O 20 7250 G 5555 Son EOS 3500 20455839504 666550 55 500 30 20 50 162 1140 98189195 ) 70687025 6623 620 525 5.250 500 405 40 3 954 21 1029 14 00129786090750 667 62 597 5665 550749 441 ) 396) 22 5 00 201 2165 60 60 50 50 50 790 23 5321250 2 04 572355 35 24 5207900529907 8985 8 506013556545 507351 25 562 MO 1654 1659390772 770 673 654 6.09 576 5657 54 445 42 3985 2014 0 991617896 72 6906 618 550 520 45 3948 27 1926790 659855555555 3 99 29 16915451118 930650 80227406936551596 55555555 3 1729 17 3 0 112580341 8055 706 7003690651 52 51 52 459 M6 4534 4 061197 2670 523 555 x 4 3954 3 995 3500 WE R. TY IO P v BNM? command option

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