A brewery is considering adding a new line of craft beers to its product mix. The new beer will require additional brewing and bottling capacity at a cost of? $15 million, but is expected to generate new sales of? $5 million per year for the next 5 years. If the brewery has a cost of capital of? 6%, what is the NPV of this? investment?

A. ?$8.6 million

B. ??$15 million

C. ?$3.7 million

D. ?$6.1 million

E. ?$10 million

Longbow Lumber is purchasing a new horizontal resaw at a cost of? $390,000. There is an additional? $20,000 delivery and installation cost. The machine has a capital cost allowance? (CCA) rate of? 15%. What will be the CCA deduction for year? 1?

A. ?$61,500

B. ?$29,250

C. ?$30,750

D. ?$205,000

E. ?$195,000

A restaurant invests? $240,000 in a new food truck for mobile lunch sales. The truck will have a capital cost allowance?(CCA) rate of? 20%. If the opportunity cost of capital is? 8.5%, and the? restaurant's marginal tax rate is? 30%, what is the present value of the CCA tax? shield?

A. ?$48,000

B. ?$48,547

C. ?$35,938

D. ?$14,400

E. ?$50,526