The project management team reveals that the XTRM BOOST project requires equipment with a purchase

price of $$276,000.$ The installation cost for the equipment would be $$74,000.$ The transportation cost of

$$30,000$ for the fertilizer producing equipment would be paid by the supplier. Starting production with this

equipment requires an additional investment of $$87,000$ in inventory and $$42,000$ in accounts receivables.

Whereas there would be additional accounts payable of $$72,000.$ The plant and equipment will have an

economic life of seven years and would be depreciated at $12$ percent straight line for the tax purpose. The

salvage value of the equipment is estimated to be $$51,000$ at the end of the project life