Question: include all formula please PGH Inc. is considering a new seven-year expansion project with an initial fixed asset investment of $3.87 million. The fixed asset

 include all formula please PGH Inc. is considering a new seven-year

include all formula please

PGH Inc. is considering a new seven-year expansion project with an initial fixed asset investment of $3.87 million. The fixed asset will be depreciated straight-line to zero over its seven-year tax life, after which time it will be worthless. No bonus depreciation will be taken. The project is estimated to generate $2,103,000 in annual sales, with costs of $1,065,000. The tax rate is 21 percent and the required return is 14.6 percent. What is the net present value of this project? A) $32,155.56 B) $71,841.16 C) $134,098.28 D) -$52,171.66 E) $95,008.04

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