1. Nivine Express is investing $500,000, all in fixed capital, in a project that will have depreciation and operating income after taxes, respectively, of $40,000 and $20,000 each year for the next three years. Nivine Express will sell the asset in three years, paying 30 percent taxes on any excess of the selling price over book value. The proposal indicates that a $647,500 terminal selling price will enable the company to earn a 15 percent internal rate of return on the investment. What terminal selling price is required for a 15% internal rate of return on the Nivine project? (2 points)