The Bruin's Den Outdoor Gear is considering a new $6-$year project to produce a new tent line. The equipment Brummitt Corporation, is evaluating a new $4-$year project. The equipment necessary for the project will cost $$2,450,000$

and can be sold for $$299,000$ at the end of the project. The asset is in the $5-$year MACRS class. The depreciation

percentage each year is $20\mathrm{.}00$ percent, $32\mathrm{.}00$ percent, $19\mathrm{.}20$ percent, $11\mathrm{.}52$ percent, and $11\mathrm{.}52$ percent, respectively. The

company's tax rate is $23$ percent. What is the aftertax salvage value of the equipment?

Multiple Choice

$$327,603$

$$299,000$

$$230,230$

$$270,397$

$$262,688$

necessary would cost $$1\mathrm{.}31$ million and be depreciated using straight$-$line depreciation to a book value of zero. At the

end of the project, the equipment can be sold for $10$ percent of its initial cost. The company believes that it can sell

$24,000$ tents per year at a price of $$65$ and variable costs of $$25$ per tent. The fixed costs will be $$405,000$ per year.

The project will require an initial investment in net working capital of $$197,000$ that will be recovered at the end of the

project. The required rate of return is $10\mathrm{.}8$ percent and the tax rate is $21$ percent. What is the NPV$?$

Multiple Choice

$$730,978$

$$806,640$

$$913,110$

$$660,178$

$$716,110$