Thomson Media is considering investing in some new equipment whose data are shown below. The equipment...

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Thomson Media is considering investing in some new equipmentwhose data are shown below. The equipment has a 3-year class lifeand will be depreciated by the MACRS depreciation system, and itwill have a positive pre-tax salvage value at the end of Year 3,when the project will be closed down. Also, some new workingcapital will be required, but it will be recovered at the end ofthe project's life. Revenues and cash operating costs are expectedto be constant over the project's 3-year life. What is theproject's NPV? Enter your answer rounded to two decimal places. Donot enter $ or comma in the answer box. For example, if your answeris $12,300.456 then enter as 12300.46 in the answer box. WACC 14.0%Net investment in fixed assets (depreciable basis) $60,000 Requirednew working capital $10,000 Sales revenues, each year $75,000Operating costs excl. depr'n, each year $30,000 Expected pretaxsalvage value $7,000 Tax rate 35.0%

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Thomson Media is considering investing in some new equipmentwhose data are shown below. The equipment has a 3-year class lifeand will be depreciated by the MACRS depreciation system, and itwill have a positive pre-tax salvage value at the end of Year 3,when the project will be closed down. Also, some new workingcapital will be required, but it will be recovered at the end ofthe project's life. Revenues and cash operating costs are expectedto be constant over the project's 3-year life. What is theproject's NPV? Enter your answer rounded to two decimal places. Donot enter $ or comma in the answer box. For example, if your answeris $12,300.456 then enter as 12300.46 in the answer box. WACC 14.0%Net investment in fixed assets (depreciable basis) $60,000 Requirednew working capital $10,000 Sales revenues, each year $75,000Operating costs excl. depr'n, each year $30,000 Expected pretaxsalvage value $7,000 Tax rate 35.0%