Question: A project using passive heating/cooling design concepts to reduce energy costs requires an investment of $125,000 in equipment (straight line depreciation with a 10 year

 A project using passive heating/cooling design concepts to reduce energy costs

A project using passive heating/cooling design concepts to reduce energy costs requires an investment of $125,000 in equipment (straight line depreciation with a 10 year depreciable life and $0 salvage value), and $30,000 in annual labor costs (not depreciable). There is a gross annual income of 225,000 from the project. At the end of 10 years, the project will be terminated. Assuming a combined tax rate of 26% and after-tax MARR of 15%, determine the project's after tax present worth from the after tax cash flow

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