Problem 9-7 .BACK PRINTER VERSION Adrian Sonnetson, the owner of Adrian Motors, is considering the addition of a paint and body shop to his automobile dealership Construction of a bulding and the purchase of necessary equipment is estimated to cost $802,000, and both the building and equipment wil depreciated over 10 years using the straight-line method. The building and equipment have zero estimate value at the end of 10 required rate of return for this project is 12 Net income related to each year d of the investment is as follows: $645,000 Material cost 71,000 150,000 Depreciation 80,200 11,000 Income before taxes 332,800 Taxes at 40% 133,120 Net income $199,680