Problem - Adrian Sonnetson, the owner of Espresso Motors, is considering the addition of a paint and body shop to his automobile dealership. Construction of a building and the purchase of necessary equipment is estimated to cost $810,300, and both the building and equipment will be depreciated over 10 years using the straight-line method. The building and equipment have zero estimated residual value at the end of 10 years. Sonnetson's required rate of return for this project is 12 percent. Net income related to each year of the investment is as follows:

Revenue                                                  $644,900

Less:

Material cost                                             70,400

Labor                                                       152,000

Depreciation                                             81,030

Other                                                       8,000

Income before taxes                                 333,470

Taxes at 40%                                           133,388

Net income                                               $200,082

Use attached table to help solve.

Required - Determine the net present value of the investment in the paint and body shop.

Attachment:- Table.rar