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Temple Corp. is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would be
Temple Corp. is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would be depreciated by the straight-line method over its 3-year life, and would have a zero salvage value. No change in net operating working capital would be required. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's NPV? Do not round the intermediate calculations and round the final answer to the nearest whole number. 10.0% Risk-adjusted WACC Net investment cost (depreciable basis) Straight-line depr. rate Sales revenues, each year Annual operating costs (excl. depr.) Tax rate $65,000 33.3333% $71,500 $25,000 35.0% O a. $25,831 O b. $29,023 O c. $33,377 O d. $34,828 O e. $22,928
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