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1 What is the cost of the capital budgeting project at time 0 ? 2 What is the yearly savings after tax on the project?
1 What is the cost of the capital budgeting project at time 0 ? 2 What is the yearly savings after tax on the project? 3 What is the present value of the savings for the project? 4 What is the present value of the salvage value of the machine? ject at time 0 ? oject? the project? le of the machine? he salvage? pital inflow? \begin{tabular}{lcc} LOSS OF CCA TAX SHIELD FROM & Sdt & 1 \\ \cline { 2 - 3 } THE NET SALVAGE VALUE & (d+r) & (1+r)n \\ \hline \end{tabular} 1 What is the cost of the capital budgeting project at time 0 ? Choose... 2 What is the yearly savings after tax on the project? Choose... 3 What is the present value of the savings for the project? Choose... 4 What is the present value of the salvage value of the machine? Choose... 5 What is the CCA tax shield from the machine? Choose... 6 What is the cost of the lost tax shield from the salvage? 7 What is the present value of the working capital inflow? Choose... 8 INDEPENDENT QUESTION: Assume the NPV IS NEGATIVE. Choose... What is the decision on the project based on the NPV of the project? [ACCEPT OR REJECT]
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