Assess a project which would realize the following cost savings each year over the next 5 years. Yr1-$82,000, Yr2-$82,000, Yr3-$64,000, Yr4-$53,000 and Yr5-$37,000. The company has hired a consultant at $22,000 to implement this project, and it will cost $185,000 to purchase this equipment today, which will not have any salvage value at the end of five years.

Other important information CCA rate is 30%, Companys Cost of Capital is 15% and the Tax Rate is 35%. There are no Working Capital requirements for this project.

Bob was asked to calculate the NPV of this project and make a recommendation as to if the company should proceed with it. What does the NPV seek to illustrate to the companysmanagement team?

Bob Sid is clueless on how to answer this question. After a week of showing no progress, Troy Car has fired Bob Sid

You decide to apply for the job and have asked Troy Car for this opportunity. Troy wants to see all your work showing the calculations.