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Aluminum Inc. is about to launch a new range of aluminum chairs, priced at $ 1 2 5 per unit. The unit cost of the

Aluminum Inc. is about to launch a new range of aluminum chairs, priced at $125 per unit. The unit cost of the stoves is $80. The firm expects to sell the chairs over the next 5 years. The venture will require an initial investment in plant and equipment of $50,000. Assume that the investment will be in an asset class with a CCA rate of 20%. At the end of 5 years, the project ends; plant and equipment will have a zero salvage value and Aluminum Inc. will continue to have other assets in this asset class. Sales projections for the aluminum chairs are as follows:

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