SafeHaven Inc.is considering purchasing new equipment to replace existing equipment that has book value of zero and market value of $75,000 today and is expected to be worthless in 10 years. New equipment costs $450,000 and is expected to provide production savings and increased profits of $100,000 per year for the next 10 years. New equipment has expected useful life of 10 years, after which its estimated salvage value would be $50,000.New equipment will be straight-line depreciated to zero in 10 years. Companys effective tax rate is 35% and required rate of return is 10%. What is net present value of this replacement project?

Question 8 options:

	$113,250
	$173,906
	$107,454
	$100,000
	$275,680