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Your mother really dislikes the low quality of T-shirts thatyour company makes. She also dislikes the low-brow sayings andtasteless pictures that you print on them - she won’t let youryounger sister wear them. Thus, your mom has been pestering you toexpand and produce a higher quality line of T-shirts in addition toyour current selection. Below are the details on this project. Costof new equipment: $80,000 Installation cost of equipment: $40,000Life of equipment: 5 years, Straight line depreciation Expectedsales: $170,000 per year Expected reduction in sales of cheapT-shirts as your few sober customers will probably shift to the newline: $10,000 per year Raw material cost: $90,000 per year Newworker salary: $20,000 per year Required Net working capital overthe life of the project: $20,000 Expected Salvage value ofequipment at the end of 5 year: $30,000 Tax rate: 35%. Assuming aWACC of 15%, what is this project’s NPV? a. -5,098 b. 1,610 c.8,870 d. 16,742 e. 25,294