Bedolla Corporation is considering a capital budgeting project that would require investing $160,000 in equipment with an expected life of 4 years and zero salvage value. Annual incremental sales would be $430,000 and annual incremental cash operating expenses would be $310,000. The company's income tax rate is 30% and its after-tax discount rate is 8%. The company uses straight-line depreciation. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting.Click here to view Exhibit 14B-1, to determine the appropriate discount factor(s) using the tables provided.The net present value of the entire project is closest to:

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To calculate the net present value (NPV) of the project, we first determine the annual cash flows and then discount them back to their present value using the after-tax discount rate of 8%.1. Calculate annual depreciation: $160,000 / 4 = $40,000 per year.2. Calculate the annual tax shield from depreciation: $40,000 * 30% = $12,000.3. Calculate the annual operating cash flow before taxes: $430,000 - $310,000 = $120,000.4. Calculate the annual operating cash flow after taxes: $120,000 * (1 - 30%) = $84,000.5. Add back the annual tax shield from depreciation to get the total annual cash flow: $84,000 + $12,000 = $96,000.Using the 8% discount rate, the present value factors for years 1 through 4 are approximately 0.926, 0.857, 0.794, and 0.735, respectively. Multiplying each year's cash flow by the corresponding discount factor and summing them gives the total present value of the cash flows:- Year 1: $96,000 * 0.926 = $88,896- Year 2: $96,000 * 0.857 = $82,272- Year 3: $96,000 * 0.794 = $76,224- Year 4: $96,000 * 0.735 = $70,560Total present value of cash flows = $88,896 + $82,272 + $76,224 + $70,560 = $317,952Subtract the initial investment of $160,000 to get the NPV:NPV = $317,952 - $160,000 = $157,952

Bedolla Corporation Is Considering a Capital Budgeting Project That Would