Question: 29. Road Hawk Inc. is adding a new production line that will cost $720,000. The line will be depreciated on a straight- line basis to

29. Road Hawk Inc. is adding a new production line that will cost $720,000. The line will be depreciated on a straight- line basis to zero value over a 7-year period and will generate net cash flows of S160,000 in each of the 7 years. At the end of the project, it is expected the line can be sold as scrap for S10,000. If the firm's marginal tax rate is 40% and its required rate of return is 14 percent, what is the net present value of this project? a. $70.100 b.-$27.900 c. $64.100 d. -$31,500

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