P12.51 Quixotic Enterprises Quixotic Enterprises is about to embark on another venture. Poncho Sanchos, the faithful financial analyst, once again will examine the viability of this venture after 31 failures. A number of Windmills are to be constructed on the southern frontier to generate electricity. They will cost $316,000 and will last 9 years, at which time they will have an estimated salvage value of $26.000. However, a capital upgrade of $97,000 will be required at the end of five years. An inventory of spare parts working capital amounting to $10,000 will be required during the term of the vonture and will be housed in a warehouse that is currently not being used, but which has been used for Qulioti's previous ventures. The warehouse could be rented out at $6,000 per year, This enterprise is expected to generate cach from the sale of electricty of $146.000 a year for 9 years Cash experces for each of the 9 years will be $12.000 The company's tax rate is 26 percent the CCA rate is 7 percent and the cost of capital is 21 percent Requirements: A Calculate the Net Present Value of the Windmill verture by completing the table below Event Expected Cash Flow Artax Cash Flow Present Value Inital Investment Worldng Capital Revenues Expenses Opportunity Cost Capital Upgrade Savage Working Capital Pevcovery CCA Tox Shield Net present value NA NA NIA NA B. It's not worth any marks, but this with the maring what number old you use for Cov-Sovi? C Should Quixotic dream the sole dream and invest the wind venture? Cik Prey 1195 Net