Question: California Hideaways is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would

California Hideaways is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would be depreciated by the straight-line method over its 3-year life, and would have zero salvage value. No new working capital would be required. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's NPV? (Hint: Cash flows are constant in Years 1-3.) WACC Net investment cost (depreciable basis) Straight-line depe'n rate Sales revenues, each year Operating costs excl. depr'n, each year Tax rate Select one: a. $9,417 b. $8,946 c. $10,434 d. $9,913 e. $8,499 10.0% $65,000 33.3333% $60,000 $25,000 35.0%

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