- the question will save this response Question 223 Question 2 FIN3610, inc. is planning to set up a new manufacturing plant in New York to produce safety tools. The company bought some land six years ago for 543 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent these facilities from a competitor instead. W the land were sold today, the company would sell for $4.6 million on an attrax bass in four years, the land could be sold for 545 million after takes. The company hired a marketing firm to analyze the market at a cost of $250,000. Here is the summary of marketing report We believe that the company will be able to sell 5,600, 6300, 7.200, and 5.900 units each year for the next four years, respectively. We believe that $550 can be charged for each unit. We believe at the end of the four year period, sales should be equipment necessary for production will cost $2.5 million and will be depreciated according to a three-year MACRS schedule. At the end of the project, the equipment can be scrapped for $450.000 Net woring capital of $325,000 will be required immediately. The company has a 21 percent tax rate, and the required return on the project is 9 percent. What is the NPV of the project What is the Year 2 depreciation expense! 5370.250 1833250 $185,250 $1,111.250 5370 379.63 Moving to another one response