recalculate Problem $6-17$ NPV and Bonus Depreciation

Eggz, Incorporated, is considering the purchase of new equipment that will allow the

company to collect loose hen feathers for sale. The equipment will cost $$505,000$ and

will be eligible for $100$ percent bonus depreciation. The equipment can be sold for

$$93,000$ at the end of the project in $5$ years. Sales would be $$339,000$ per year, with

annual fixed costs of $$63,000$ and variable costs equal to $38$ percent of sales. The

project would require an investment of $$57,000$ in NWC that would be returned at the

end of the project. The tax rate is $21$ percent and the required return is $11$

percent. Calculate the NPV of this project. $($Do not round intermediate calculations and

round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

Answer is complete but not entirely correct.

NPV