A company is considering a 6-year project that requires an initial outlay of $30,000. The project...

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A company is considering a 6-year project that requires aninitial outlay of $30,000. The project engineer has estimated thatthe operating cash flows will be $3,000 in year 1, $6,000 in year2, $7,000 in year 3, $7,000 in year 4, $7,000 in year 5, and $8,000in year 6. At the end of the project, the equipment will be fullydepreciated, classified as 5-year property under MACRS. The projectengineer believes the equipment can be sold for $6,000 at the endof the project. If the tax rate is 35% and the required rate ofreturn is 18%, what is the net present value (NPV) of this project?(Answer to the nearest dollar.)

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A company is considering a 6-year project that requires aninitial outlay of $30,000. The project engineer has estimated thatthe operating cash flows will be $3,000 in year 1, $6,000 in year2, $7,000 in year 3, $7,000 in year 4, $7,000 in year 5, and $8,000in year 6. At the end of the project, the equipment will be fullydepreciated, classified as 5-year property under MACRS. The projectengineer believes the equipment can be sold for $6,000 at the endof the project. If the tax rate is 35% and the required rate ofreturn is 18%, what is the net present value (NPV) of this project?(Answer to the nearest dollar.)