NPV, inflation and taxes (continuation of 22-32). Refer to the information in the preceding 1. Total present value problem, but now assume that the tax rate is 30% and that you are not ignoring taxes. Equipment of tax shield, $114,545 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?

LO1