Refer to the Web Tax Appendix to correctly answer this question. Barngrover Inc. is considering a new...

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Refer to the Web Tax Appendixto correctly answer this question. Barngrover Inc. isconsidering a new investment whose data are shown below. Therequired equipment will be used for 3 years during the project’slife. The equipment qualifies for bonus depreciation, so it will befully depreciated at the time of purchase. It will have a positivesalvage value at the end of Year 3, when the project would beterminated. Also, some new net operating working capital would berequired, but it would be recovered at the end of the project'slife. Revenues and operating costs are expected to be constant overthe project's 3-year life. What is the project'sNPV?
Please give a DETAILEDExplanation and show how you reached your answer usingExcel or formulas or both.
WACC 8%
Purchase price ofequipment      $125,000
Required new NOWC $22,000
Sales revenues $140,000
Operating costs $56,000
Before-tax salvage value $9,000
Tax rate 25%
a.   $51,965.48
b.   $68,607.11
c.   $69,429.79
d.   $71,215.91
e.   $73,965.48

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Refer to the Web Tax Appendixto correctly answer this question. Barngrover Inc. isconsidering a new investment whose data are shown below. Therequired equipment will be used for 3 years during the project’slife. The equipment qualifies for bonus depreciation, so it will befully depreciated at the time of purchase. It will have a positivesalvage value at the end of Year 3, when the project would beterminated. Also, some new net operating working capital would berequired, but it would be recovered at the end of the project'slife. Revenues and operating costs are expected to be constant overthe project's 3-year life. What is the project'sNPV?Please give a DETAILEDExplanation and show how you reached your answer usingExcel or formulas or both.WACC 8%Purchase price ofequipment $125,000Required new NOWC $22,000Sales revenues $140,000Operating costs $56,000Before-tax salvage value $9,000Tax rate 25%a. $51,965.48b. $68,607.11c. $69,429.79d. $71,215.91e. $73,965.48