1. Sub-Prime Loan Company is thinking of opening a new office, and the key data are shown below. The company owns the building that would be used, and it could sell it for $100,000 after taxes if it decides not to open the new office. The equipment for the project would be depreciated by the straight-line method over the project's 3-year life, after which it would be worth nothing and thus it would have a zero salvage value. No change in net operating working capital would be required, and revenues and other operating costs would be constant over the project's 3-year life. What is the project's NPV? (Hint: Cash flows are constant in Years 1-3.) Do not round the intermediate calculations and round the final answer to the nearest whole number.

   WACC	10.0%
   Opportunity cost	$100,000
   Net equipment cost (depreciable basis)	$65,000
   Straight-line depr. rate for equipment	33.333%
   Annual sales revenues	$150,000
   Annual operating costs (excl. depr.)	$25,000
   Tax rate	35%

   	a.	048,087
   	b.	55,915
   	c.	054,238
   	d.	061,507
   	e.	043,614