Question 30 of 50 < -/5 E Lucas Bat became a baseball enthusiast at a very early age. All of his baseball experience has provided him valuable knowledge of the sport, and he is thinking about going into the batting cage business. He estimates the construction of a state-of-the-art building and the purchase of necessary equipment will cost $922,000. Both the facility and the equipment will be depreciated over 12 years using the straight-line method and are expected to have zero salvage values. His required rate of return is 9% (present value factor of 7.16073). Estimated annual net income is as follows: A Revenue $407,500 Less: Utility cost $49,500 Supplies $17,500 Labor 150,500 Depreciation 79,500 Other 48,000 345.000 Net income $62,500