Question 13 Benek, Incorporated, is considering a new 10-year expansion project with an...

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Accounting

Question 13
Benek, Incorporated, is considering a new 10-year expansion project with an initial fixed asset investment of $132,900. The fixed asset will be depreciated straight-line to zero over its 10-year tax life, after which time it will be worthless. The project is estimated to generate $99,000 in annual sales, with costs of $34,300. The tax rate is 22 percent, and the required return is 14.8 percent. What is the net present value of this project?
-$402,906
$137,106
$270,006
-$119,471
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