Expected to be the minimal value for security

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1. The price which is expected to be the minimal value for a security is called the:

1. reactive point.

2. support level.

3. par value.

4. resistance level.

5. base value.

2. PGH, Inc. is considering a new six-year expansion project that requires an initial fixed asset investment of $3.102 million. The fixed asset will be depreciated straight-line to zero over its six-year tax life, after which time it will be worthless. The project is estimated to generate $1,987,000 in annual sales, with costs of $1,102,200. The tax rate is 35 percent and the required return on the project is 16 percent. What is the net present value for this project?

$432,155.56

-$316,081.72

$134,098.28

-$134,217.78

$435,008.04

Reference no: EM131870916

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