Given the following information: Nominal Initial Cost = $68,000; Nominal Before-tax Net Return = 11,000 Marginal Tax Rate = 20%; Required rate of return =...

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Given the following information:
            NominalInitial Cost =$68,000;       NominalBefore-tax Net Return = 11,000
            MarginalTax Rate =20%;               Requiredrate of return = 12%
            RealTerminal Value =$60,000;      Investment Life = 3years
            InflationRate =4%;                          RiskPremium = 2%
Suppose that IRS will allow the investor to depreciate theinvestment using straight-line over 12 years.
(iv) What is the nominal after-tax terminal value?
            a.         $60,120                      b.         $64,600
            c.          $64,193                      d.         $64,005
            (v)What is the present value of the nominal after-tax terminalvalue?
            a.         $41,446                      b.         $44,534
            c.          $46,685                      d.         $44,124
(vi) What is the NPV of this investment?
            a.         $4,571.32                   b.         $4,754.17
            c.          $4,388.17                   d.         $3,657.06

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Given the following information: NominalInitial Cost =$68,000; NominalBefore-tax Net Return = 11,000 MarginalTax Rate =20%; Requiredrate of return = 12% RealTerminal Value =$60,000; Investment Life = 3years InflationRate =4%; RiskPremium = 2%Suppose that IRS will allow the investor to depreciate theinvestment using straight-line over 12 years.(iv) What is the nominal after-tax terminal value? a. $60,120 b. $64,600 c. $64,193 d. $64,005 (v)What is the present value of the nominal after-tax terminalvalue? a. $41,446 b. $44,534 c. $46,685 d. $44,124(vi) What is the NPV of this investment? a. $4,571.32 b. $4,754.17 c. $4,388.17 d. $3,657.06