1.
A new hog investment requires an initial outlay of $130,000 and is
expected to increase operating receipts by 87,000 but will also
increase operating expenses by 23,000. The investment will be
depreciated over 15 years and will have a $0 salvage value. The
marginal tax rate is 30%. The investment will be analyzed over 7
years and the terminal value of the hog investment after 7 years
will be $45,000. The pre-tax discount rate is 13.5%. What is the...