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Answer Question B Assuming NPV is 54.45 Million and the present value of the CCA Tax shield is 30.23 Million The relevant CCA rate for
Answer Question B Assuming NPV is 54.45 Million and the present value of the CCA Tax shield is 30.23 Million
The relevant CCA rate for the capital expenditures is 20%. Assume assets are never sold. a. For this base-case scenario, what is the NPV of the plant to manufacture lightweight tractors? b. Based on input from the marketing department, Buhler is uncertain about its revenue forecast. In particular, management would like to examine the sensitivity of the NPV to the revenue assumptions. What is the NPV of this project if revenues are 10% higher than forecast? What is the NPV of this project if revenues are 10% lower than forecastStep by Step Solution
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