Question 2 of 10

Question 2 of 10 View Policies Current Attempt in Progress Crane Manufacturing management is considering overhauling their existing line. which currently has both a book value and a salvage value of $0, It would cost $200,000 to overhaul the existing line, but this expenditure would extend its useful 'ife to five years. The line would have a $0 salvage value at the end Of five years. Thc Overhaul outlay would be capitalized and depreciated using MACRS over three years. The tax rate is 35 percent. the opportunity cost Of capital is 13 percent. The NPV of new production line is S-361,000. (DO not round discount factor, Round yout intern-Ediate calculations and answer to the dollar. e.g. 5,275.)