Can you please explain how to get the correct answer of $$16,920$: Majestic Theaters is considering investing in some new projection equipment whose data are shown below. The required equipment has a $7-$year project life falling into a CCA class of $30\%,$ but

it would have a positive pre$-$tax salvage value at the end of Year $7.$ Also, some new working capital would be required, but it would be recovered at the end of the project's ife. Revenues and

cash operating costs are expected to be constant over the project's $7-$year life. What is the project's NPV$?$

WACC

Net capital investment in fixed assets $$950,000$

Expected salvage value $($fixed assets$)$ $$50,000$

Tax rate

$35\mathrm{.}0\%$

a$.$ $$13,965$

b$.$ $$15,226$

c$.$ $$16,920$

d$.$ $$17,882$