3. Temple Corp. is considering a new project whose data are shown below. The equipment that would be used has a 3-year t

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3 Temple Corp Is Considering A New Project Whose Data Are Shown Below The Equipment That Would Be Used Has A 3 Year T 1 (46.11 KiB) Viewed 76 times

3. Temple Corp. is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life. Under the new tax law, the equipment used in the project is eligible for 100% bonus depreciation, so it will be fully depreciated at t = 0. The equipment would have a zero- salvage value at the end of the project's life. No change in net operating working capital (NOWC) would be required. Revenues and operating costs are expected to be constant over the project's 3-year life. What is the project's NPV? (2 points) Risk-adjusted WACC Equipment cost Sales revenues, each year Annual operating costs Tax rate 110.0% $65,000 $55,500 $25,000 25.0%