Question: Foley Systems is considering a new investment whose data are shown below. The equipment would be depreciated on a straight-line basis over the project's 3-year

 Foley Systems is considering a new investment whose data are shown

Foley Systems is considering a new investment whose data are shown below. The equipment would be depreciated on a straight-line basis over the project's 3-year life, would have a zero salvage value, and would require additional net operating working capital that would be recovered at the end of the project's life. Revenues and other operating costs are expected to be constant over the project's life. What is the project's NPV? (Hint: Cash flows from operations are constant in Years 1 to 3.) Do not round the intermediate calculations and round the final answer to the nearest whole number. 10.0% WACC Net investment in fixed assets (basis) $75,000 Required net operating working capital $15,000 33.333% Straight-line depreciation rate Annual sales revenues $56,000 Annual operating costs (excl. depr.) $25,000 35.0% Tax rate O a. -$6,380 O b.-$6,860 O C. -$7,683 O d. -$7,615 O e. -$6,106

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