Question: Based on the information listed below concerning a capital budgeting project, the NPV for this project is $ - Last year, Muskett Inc., which makes

 Based on the information listed below concerning a capital budgeting project,

Based on the information listed below concerning a capital budgeting project, the NPV for this project is $ - Last year, Muskett Inc., which makes nonflammable fireworks, hired an engineering firm to evaluate the technical capabilities of three different pieces of high-tech equipment that may be used in their manufacturing process. The study cost $300,000 and the results suggested that only the ECU-9 was capable of meeting Muskett's needs. - The ECU-9 will cost $4 million. - The equipment will be depreciated straight-line over 25 years to a salvage value of $400,000 and sold for that amount in 25 years. - If purchased the ECU-9 will increase revenues by $2.3 million per year and increase pperating cost by $1.5 million per year. - The company will increase net working capital by $170,000 at the beginning of the project. This working capital will be liquidated at the end of the project. - The marginal tax rate is 25%. - The cost of capital is 13.00%. 1) 518,718.56

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