Question $15$

Ryan Company is considering whether to invest in a piece of equipment that requires an investment of $$800,000$ today. The project will provide net before$-$tax operating cash inflows of $$240,00$ of each year for eight years, and it will have a salvage value of $$0$ at the end of eight years. Ryan Company uses straight$-$line depreciation for income tax purposes. The income tax rate is $40\%$ ani rate is $13\%.$ Income taxes are paid at the end of the year. Calculate the net present value of the piece of equipment. Don't forget income taxes!!!

negative $$10,897$

positive $$82,972$

positive $$351,704$

negative $$25,882$

positive $$178,948$

negative $$128,172$

positive $$159,754$

positive $$252,780$