Temple Corp. is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would be depreciated by the straight-line method over its 3-year life, and would have a zero salvage value. No change in net operating working capital would be required. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's NPV? Do not round the intermediate calculations and round the final answer to the nearest whole number. ? Risk-adjusted WACC10.0% Net investment cost (depreciable basis)$65,000 Straight-line depr. rate33.3333% Sales revenues, each year$71,500 Annual operating costs (excl. depr.)$25,000 Tax rate35.0% ?
A. $25,831
B. $33,377
C. $34,828
D. $29,023
E. $22,928
Answer: D
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