1. The price which is expected to be the minimal value for a security is called the:
1. reactive point.
2. support level.
3. par value.
4. resistance level.
5. base value.
2. PGH, Inc. is considering a new six-year expansion project that requires an initial fixed asset investment of $3.102 million. The fixed asset will be depreciated straight-line to zero over its six-year tax life, after which time it will be worthless. The project is estimated to generate $1,987,000 in annual sales, with costs of $1,102,200. The tax rate is 35 percent and the required return on the project is 16 percent. What is the net present value for this project?
$432,155.56
-$316,081.72
$134,098.28
-$134,217.78
$435,008.04