Question
A company is considering a project that would require the purchase of an asset for $140,000. The asset belongs in a 30% CCA class and
A company is considering a project that would require the purchase of an asset for $140,000. The asset belongs in a 30% CCA class and is expected to have no salvage value at the end of the 6-year project. The project would require a net working capital investment of $25,000 up-front. The company has a tax rate of 35% and a required return of 15%. The project is expected to generate annual pre-tax cost savings of $46,000. What is the PVCCATS?
Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit any commas and the $ sign in your response. For example, an answer of $1,000.50 should be entered as 1000.50.
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