Question: Firm R is considering a project that is expected to produce and sell 46,000 units a year for 5 years. The cost to produce one

Firm R is considering a project that is expected to produce and sell 46,000 units a year for 5 years. The cost to produce one unit is $4.50 and the unit is sold for $11.99. If incremental depreciation is $90,000, incremental operating expenses are $0, and the corporate tax rate is 30%, what is the NOPAT of the project one year from today?

a. $76,362

b. $178,178

c. $124,944

d. $241,178

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