NPV and PI 1) Strength Steel, LLP. plans to expand its operations. The 3-year expansion project will increase operating profit by r by $265,000. The expansion requires $618,000 of new equipment, that will be depreciated straight-line to a zero- book value over its 3-year life. At the end of the three years, the equipment will be sold for an estimated $60,000. In addition, the expansion will require an extra $23,000 of working capital in the form of additional inventory. The project hurdle rate is 14% and the tax rate is 21% What are the project NPV and Pl? -$7,014.54, 0.97 $3,106.54, 1.01 -$12,593.78, 0.95 -$2,646.00, 0.99 None of the above