You are evaluating a capital project for equipment with a total
installed cost of $750,000. The equipment has an estimated life of
30 years, with an expected salvage value at the end of the project
of $50,000. The project will be depreciated via simplified
straight-line depreciation method. In addition, a working capital
investment of $5,000 is required. The project replaces an old piece
of equipment which is currently in service and is fully
depreciated, but has an expected after-tax salvage...