Sub-Prime Loan Company Is Thinking of Opening a New Office,and

Sub-Prime Loan Company is thinking of opening a new office,and the key data are shown below.The company owns the building that would be used,and it could sell it for $100,000 after taxes if it decides not to open the new office.The equipment for the project would be depreciated by the straight-line method over the project's 3-year life,after which it would be worth nothing and thus it would have a zero salvage value.No change in net operating working capital would be required,and revenues and other operating costs would be constant over the project's 3-year life.What is the project's NPV? (Hint: Cash flows are constant in Years 1-3. ) Do not round the intermediate calculations and round the final answer to the nearest whole number. $$\begin{array} { l r } \text { WACC } & 10.0 \% \\\text { Opportunity cost } & \$ 100,000 \\\text { Net equipment cost (depreciable basis) } & \$ 65,000 \\\text { Straight-line depr. rate for equipment } & 33.333 \% \\\text { Annual sales revenues } & \$ 128,000 \\\text { Annual operating costs (excl. depr.) } & \$ 25,000 \\\text { Tax rate } & 35 \%\end{array}$$
?

A) 020,353
B) 022,592
C) 021,168
D) 021,575
E) 017,707