TB MC Qu. 12-82 (Algo) Estimated net present value (NPV) of the proposed investment: Plant Company Plant Company is contemplating the purchase of a new piece of equipment for $51000. Plant is in the 30% Income tax bracket. Predicted annual after tax cash inflows from this Investment are $13,000 $20,000, $12,000, $14,000 and $5,000 for years 1 through 5, respectively. The firm uses straight-line depreciation with no residual value at the end of five years. Assume that the hurdle rate for accepting new capital investment projects for the company is 4%, after-tax. (Note: PV $1 factors for 4% are as follows: for year 1-0.962, for year 2=0.925, for year 3 =0.889, for year 4 0.855, for year 5 -0.822 the PV annuity factor for 4%, 5 years = 4.452.) At an after-tax discount rate of 4%, the estimated net present value (NPV) of the proposed investment is (rounded to the nearest hundred dollars) Multiple Choice ($10,000) (57300) (54,300) Multiple Choice O O ($10,000). ($7,300). ($4,300). ($1,000). $6,800