12. Thomson Media is considering some new equipment whose data are shown below. The equipment has a 3-year tax life straight-line method over 3 years, but it would have a positive pre-tax salvage value the end of Year 3, when the required, but it would constant over the project's 3-year life. What is the project's the final answer to the nearest whole number. Fill out the table below. (20 pts) project would be closed down. Also, additional net operating working capital would be e noieecovered at the end of the project's life. Revenues and other operating costs are expected to be NPV? Do not round the intermediate calculations and round WACC Net investment in fixed assets (depreciable basis) Required net operating working capital Straight-line depreciation rate Annual sales revenues Annual operating costs (exel. depreciation) Expected pre-tax salvage value Tax rate 10.0% $70,000 $10,000 33.333% $56,000 $30,000 $5,000 35.0% Investment Outlays at Time o CAPEX Fixed Asset Investment NOWC = Additional net operating working Sales revenues Operating Cost Depreciation capital needed EBIT (or Operating income) Taxes on operating income EBIT (1-T) = After-tax project operating income Add back depreciation EBIT (1- T)+ Depreciation Terminal Cash Flows at Time 3 Salvage value (taxed as ordinary income) Tax on salvage value- 0.35 x (SV- BV of 3) equipment at t After-tax salvage value ANOWC Recovery of net operating working capital Project free cash flows EBIT(1 -T)+DEP -CAPEX-ANOWC PROJECT NPV