Refer to the information in the preceding problem, but now assume that the tax rate is 30%
Question:
Equipment is subject to 20% CCA rate declining balance for income tax purposes.
REQUIRED
1. Calculate the NPV of the project without inflation.
2. Calculate the NPV of the project with inflation.
3. Should Cost-Less buy the new cash registers?
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1a Initial equipment investment 600000 b Annual cash flow from operations 140000 Deduct income tax p...View the full answer
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Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
Question Posted:
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