Questions 44-48 address a capital budgeting problem and are related, though there are assumptions made in sequential questions to avoid an initial error causing all subsequent responses to be in error. Consider the following for questions 44-48: A new product is being considered by Stanton Corp. An outlay of $40,000 is required for equipment and an additional net working capital investment of $1000 is required. The project is expected to have a 4 year life and the equipment will be depreciated on a straight line basis (equal annual amount) to a $4,000 book value. Producing the new product will reduce current manufacturing expenses by $5,000 annually and increase earnings (revenue) before depreciation and taxes by $6,000 annually. Stanton's marginal tax rate is 10 mAPART Clanton AVRRats the ARIinment will have s ourse assessment id=_337997_1&course_id=_358254_1&new_attempt=1&content