A Canadian-controlled and private mail-order computer company in Nova Scotia, sells

computer supplies. The company leased showroom space and a warehouse for $30,000 a year and installed $120,000 worth of inventory checking and packaging equipment. The CCA rate for this investment is 30%. The life span of the project is 5 years. The salvage value is $15,000. The MARR is 12%. The store was completed and operations began on January 1. The company had a gross income of $1,500,000 annually. Annual supplies and all operating expenses other than the lease expense were itemized as follows:

Costs of Good Sold

$500000

Salaries

$250000

Other Expenses

$100000

Total Expenses

$850000

a) How much will the company pay in federal and provincial income taxes in each of the 5 years?

b)Find the net present worth of the project?