Temple corp is considering a new project whose data are

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Temple Corp. is considering a new project whose data are shown below. The equipment that would be used has a three-year tax life, would be depreciated by the straight-line method over its three-year life, and would have a zero salvage value. No new working capital would be required. Revenues and other operating costs are expected to be constant over the project's three-year life. What is the project's NPV? Risk-adjusted WACC 10.00% Net investment cost $65,000 Straight-line deprec. rate 33.333% Sales revenues, each year $65,000 Operating costs , each year $25,000 Tax rate 35.0% ANSWER CHOICES: a. $15,740 b. $16,569 c. $17,441 d. $18,359 e. $19,325 Please show work as this is the next part of the question as well.

Reference no: EM13566440

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