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WHAT IS THE NET PRESENT VALUE... need this as quick as possible thwnk you so much! Q5) Your corporation is considering investing in a new

WHAT IS THE NET PRESENT VALUE... need this as quick as possible thwnk you so much!
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Q5) Your corporation is considering investing in a new product line. The annual revenues (sales) for the new product line are expected to be $347,360.00 with variable costs equal to 50% of these sales. In addition annual fixed costs associated with this new product line are expected to be $44,235.00. The old equipment currently has no market value. The new equipment cost $74,089.00. The new equipment will be depreciated to zero using straight-line depreciation for the three-year life of the project. At the end of the project the equipment is expected to have a salvage value of $20,246.00. An increase in net working capital of $62,632.00 is also required for the life of the project. The corporation has a beta of 0.878, a tax rate of 26.93%, and a target capital structure consisting of 34.45% equity and 65.55% debt. Treasury securities have a yield of 2.46% and the expected return on the market is 7.81%. In addition, the company currently has outstanding bonds that have a yield to maturity of 8.93%

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