a start-up biotech company is considering making an investment of $100,000 in a new filtration system. the associated estimates are summarized below: annual receipts $75,000 annual expenses $45,000 useful life 8 years terminal book value $20,000 (eoy 8) terminal market value $0 straight-line depreciation will be used, and the effective income tax rate is 20%. the after-tax marr is 15% per year. determine whether this investment is an attractive option for the company.
