(Ref. Unit 7 Exercises 1 and 6) A company is considering an expansion of its product lineup. The company's CFO has the following information for this expansion project: The project has an 8-year life and requires a $480,000 fixed asset investment. These assets will be depreciated straight-line to zero over the project life, and their estimated market value at the end of the project is zero. Six months ago, the company worked with a team of consultants to investigate the market for the new product. The company paid $25,000 for the consultation. The company plans to use a piece of land for the project. The company currently owns the land with a market value of $20,000. The project will generate annual sales and costs of $520,000 and $400,000. The project requires an initial investment of $50,000 in net working capital, which the company expects to fully recover at the end of the project. The company is subject to a 21% income tax rate. The required rate of return on the project is 11%. Note: There is no capital gain in this example. Accordingly, you do not need to know the capital gain tax rate.